Fitch cuts outlook on Macquarie

Ratings agency Fitch has downgraded its outlook for Macquarie Bank to negative from stable, saying its earnings will come under pressure from the coronavirus-related economic downturn.

Fitch expects the bank’s many business customers to have trouble repaying loans amid weak conditions from the coronavirus pandemic. High unemployment will add to the impact.

Bad loans may take six to 12 months to emerge, according to Fitch.

Macquarie shares were valued at $106.17 before trading began on Tuesday.

The bank’s share price has dipped by 22.98 per cent since January 1 amid a wider market downturn.

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