Fitch affirms Macquarie rating

Ratings agency praises group's strong balance sheet, geographic diversity.

Macquarie Group (MQG) should be able to weather a "modest deterioration" in Australia's operating environment thanks to its strong balance sheet and geographic diversity, according to Fitch Ratings.

The ratings agency affirmed Macquarie Group’s long-term issuer default rating at A- with a stable outlook, in a note on Monday.

Fitch said the rating reflected Macquarie's conservative approach to liquidity, solid capital buffers, robust risk management and a diverse business mix.

Those factors were partly offset by the investment bank's earnings volatility and reliance on wholesale funding.

"[Macquarie's] balance sheet strength and geographic diversity should allow them to weather a likely modest deterioration in Australia's operating environment over the next 12-18 months with limited business impact," Fitch said.