Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Kiwibank credit rating outlook upgraded with sovereign

Kiwibank credit rating outlook upgraded with sovereign

By Paul McBeth

July 11 (BusinessDesk) - Government-owned lender Kiwibank has had the outlook on its credit ratings upgraded by Fitch Ratings as a result of its upbeat assessment of the sovereign earlier this week.

Fitch today affirmed the bank's AA foreign currency long-term issuer default rating and AA+ local currency IDR, while upgrading the outlook to 'positive' from 'stable', it said in a statement. The move reflects the new outlook on the New Zealand sovereign rating, which was upgraded to 'positive' on Tuesday due to the government's improving books. Kiwibank is a subsidiary of state-owned enterprise, New Zealand Post.

"The agency believes support would likely flow from the sovereign through NZ Post to Kiwibank, should NZ Post find it difficult to provide support itself," Fitch said. "Kiwibank's debt accounts for almost all of NZ Post's debt, with most of this debt representing retail deposits."

In February, the bank reported a 10 percent decline in first-half profit to $52 million, and has signalled plans to spend $100 million over four years to upgrade its core banking system.

Fitch said the lender's conservative risk appetite and asset quality compare favourably with domestic peers, while noting its capitalisation has remained more moderate relative to other lenders in spite of continuing improvements.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Statistics: Net Annual Migration Passes 71,000

A record 71,300 more migrants arrived in New Zealand than left in the January 2017 year, Statistics New Zealand said today. This surpassed the previous annual record set in December 2016. More>>

ALSO:

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news