OREANDA-NEWS. Fitch Ratings has assigned a Senior Unsecured rating of 'A(emr)'to Macquarie Bank Limited's (MBL) USD20m Range Accrual Notes issued under the bank's Structured Note Programme. The instruments were issued on 12 June 2014 and mature on 12 June 2029. The (emr) suffix indicates that the rating only reflects MBL's counterparty credit risk and excludes the embedded market risk that may vary the size of the coupon payments on the notes.

The notes are fully principal-protected, in that only the coupon stream on the notes is subject to market risk. Coupon payments are linked to the spread between the 30-year and the 2-year US dollar constant maturity swap rates, and the level of the 3-months US dollar Libor. The instruments may not pay any coupon for a particular interest period if the referenced interest rates move unfavourably.

KEY RATING DRIVERS
The notes are rated in line with MBL's 'A' Long-Term Issuer Default Rating (IDR) as they constitute direct, unsecured and unsubordinated obligations and rank equally with all its other unsecured, unsubordinated obligations.

RATING SENSITIVITIES
The rating on the notes is sensitive to changes in MBL's IDR, which is driven by its Viability Rating of 'a'. For further information on MBL's ratings and credit profile, see the rating action commentary "Fitch Affirms Macquarie Group Limited and its Australian subs" dated 14 August 2014, and the bank's rating report dated 15 September 2014, both of which are available at www.fitchratings.com.