Standard & Poor's is lowering the credit ratings of 23 Australian financial institutions including AMP, Bank of Queensland and Bendigo and Adelaide Bank due to what it said is an increased chance of a sharp fall in property prices.

Auswide, MyState, Newcastle Permanent, Qudos and Rural Bank are also among the lenders to have their ratings cut by one notch, as S&P acted on concerns about record household debt and the continuing rise in Sydney and Melbourne property prices. The ratings agency, whose decisions help determine how much lenders…