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

 

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>

Kaikōura Earthquake: Private Insurers Receive $1.8b Claims

Insurance Council Chief Executive Tim Grafton said most is for commercial loss at $1.36 billion, with residential claims amounting to over $460 million. “...We have a high level of confidence that most people will have received settlement offers by the end of this year." More>>

ALSO:

Forms And Data: New Proposals To Simplify Personal Income Tax

The Government is proposing to make tax simpler for individuals, with people whose only income is from a salary, wages or investments no longer being required to file tax returns to receive tax refunds or to calculate any additional tax. More>>