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Credit rating agency Standard and Poor’s has given the Police and Families Credit Union (PFCU) a ‘BB+’ long term credit rating, and a ‘B’ short term rating, making it the first credit union in New Zealand to have an S&P rating under the Reserve Bank’s new regime for regulating non-bank deposit takers. Both ratings have a stable outlook.

A Standard and Poor’s rating below ‘BBB-’ is widely referred to as “junk” status.

Under the RBNZ’s new regime it will be mandatory for all deposit takers to obtain a credit rating by March 2010.

“PFCU is the first credit union in New Zealand to be rated by Standard & Poor’s. We view the credit union’s sustainable business model, very good asset quality, and overall sound financial profile as strengths that underpin the ratings,” Standard & Poor’s credit analyst Gavin Gunning said.

“Further, we consider PFCU’s competitive position to be sound as it is not in direct competition with banks, unlike many community-based and regional credit unions,” Gunning said. 

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