The ratings agency doesn't expect the compensation to affected customers to be large enough to affect the bank's credit profile. Photo: Reuters
The Commonwealth Bank's credit rating is unaffected by the customer compensation scheme the bank has opened after a damning Senate inquiry into its financial planning arm, Standard & Poor's says.
A week after the bank announced it would allow clients who received financial advice between 2003 and 2012 to have their cases reviewed, the ratings agency said payouts were not likely to affect the company's AA rating.
"At this stage, we believe that it is unlikely that any potential monetary compensation for customers stemming from the program would be sufficiently large enough to affect our view of CBA's stand-alone credit profile factors. We will, however, continue to assess ongoing developments relating to these matters," S&P said in a statement this morning.
It is the latest reaction to a scandal that involved fraud by a group of planners between 2006 and 2010.
So far the bank has paid out $52 million in compensation, and has not said how much more it expects to pay out. The chair of the Senate inquiry into the bank, Mark Bishop, has estimated the total compensation bill could be $250 million.
Sharemarket analysts have also said the scandal is unlikely to be "material" for earnings, but they say it is hurting CBA's reputation and could hurt revenue in its wealth management arm.
The Commonwealth Bank has yet to reveal key details about its compensation arrangements, including who it will appoint as customer advocates and who will sit on the independent panel overseeing the scheme.