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Standard and Poor’s has assigned a BB- counterparty credit rating to the New Zealand finance company Broadlands Finance (Broadlands), which means the New Zealand finance company will not be eligible to apply for the government’s deposit guarantee extension from October this year.

The deposit guarantee extension from October this year until the end of 2011 is only available to those non-bank deposit takers with a BB rating or better. Finance companies must have a credit rating by March 1 under the Reserve Bank’s new regulatory regime. The credit ratings agency said the outlook was negative.

“The ratings on Broadlands reflect the company’s vulnerable liquidity, with more than half of its outstanding retail debentures maturing in the coming 12 months, and its cash position in part hinging on the collections from its higher-risk consumer loan portfolio” credit analyst with Standard and Poor’s Gavin Gunning said.
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Standard and Poor’s has assigned a single ‘B’ rating to NZF Money, which means the personal finance company will not be eligible to apply for the government’s deposit guarantee extension from October this year. The credit rating agency said the outlook was negative and the rating reflected the ‘weakly capitalized’ nature of its parent NZF Group and uncertainties around its liquidity through 2010. (Update 1 adds comments from NZF Money about plans to raise capital)

The deposit guarantee extension is only available to those non-bank deposit takers with a BB rating or better. Finance companies must have a credit rating by March 1 under the Reserve Bank’s new regulatory regime.

Here is the full Standard and Poor’s statement below.

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Standard and Poor’s has assigned a BB long term credit rating to recently restructured rural finance company PGG Wrightson Finance, which will be enough for it to be part of the government’s extended deposit guarantee scheme.

The deposit guarantee extension from October this year until the end of 2011 is only available to those non-bank deposit takers with a BB rating or better. Finance companies must have a credit rating by March 1 under the Reserve Bank’s new regulatory regime.

PGG Wrightson said it would look to increase its rating over time and was pleased with a 78% average reinvestment rate from depositers, which had increased to a high of 90% through January. PGG Wrightson offers both guaranteed and non-guaranteed deposits.
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Standard and Poor’s has issued a B+ long term credit rating to Napier’s Manchester Unity Credit Union (MUCU), which is insufficient for it to be part of the government’s extended deposit guarantee scheme.

The deposit guarantee extension from October this year until the end of 2011 is only available to those non-bank deposit takers with a BB rating or better. Finance companies must have a credit rating by March 1 under the Reserve Bank’s new regulatory regime.

Here is the full statement below from Standard and Poor’s.
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Standard and Poor’s has assigned a BB long term credit rating to Fisher and Paykel Finance and given it a stable outlook, which means the personal finance company will be eligible to apply for the government’s deposit guarantee extension.

The deposit guarantee extension from October this year is only available to those non-bank deposit takers with a BB rating or better. Finance companies must have a credit rating by March 1 under the Reserve Bank’s new regulatory regime.

Here is the full Standard and Poor’s statement below.
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Standard and Poor’s has affirmed South Canterbury Finance’s BB+ long term credit rating, removing the Timaru-based finance company from its immediate CreditWatch Negative list. But Standard and Poor’s left the outlook for the rating as negative and said South Canterbury’s liquidity (cash position) and asset quality (loan quality) remained weak.

South Canterbury would need to find new sources of cash, deal with related party investments and rebuild its capital to keep the current rating, which is necessary for the Alan Hubbard-controlled firm to retain its government guarantee beyond October 2010.

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