Standard & Poor's assigns investment grade rating

Standard & Poor’s assigns “investment grade” rating to MARAC

MARAC Finance Ltd (MARAC) today announced it has been assigned an ”investment grade” rating by internationally recognised credit rating agency, Standard & Poor’s. The rating is BBB-* and has been issued as ‘stable’ for two years.

MARAC, a wholly owned subsidiary of listed Pyne Gould Corporation [NZX:PGC], is the first New Zealand owned and operated non-bank finance company to achieve a Standard & Poor’s ”investment grade” rating.

MARAC Managing Director, Brian Jolliffe, said this was a significant achievement for the company.

“This is an exciting milestone in MARAC’s development, confirming our status as a quality, top-tier finance company. We believe this sets a new credit rating standard for finance companies.

“The rating gives independent confirmation of the quality we strive to deliver to our customers and provides our investors with a reassurance that they have made the right investment decision.“

MARAC is one of the first finance companies in New Zealand to take proactive steps to seek a Standard & Poor’s credit rating. MARAC selected Standard & Poor’s as it believes it is important for investors and financial intermediaries to have complete confidence in the organisation undertaking such an important analysis.

The move provides investors with a benchmark by which they can make more informed investment decisions and distinguish the level of risk associated with different companies’ investment offerings.

“MARAC has proactively sought this rating and is at the forefront of what will hopefully be an industry trend toward greater transparency,” Mr Jolliffe said.

Standard and Poor’s Credit Analyst, Craig Bennett, said the rating was a reflection of MARAC's good asset quality experience, its experienced management, sound strategy and good market position in the New Zealand finance sector.

“We believe MARAC is well placed to maintain its business and earnings profile by continued focus on asset quality and liquidity management.”
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Standard & Poor’s also examined the company’s funding, profit and capitalisation as well as its ownership structure, governance and risk management.

Pyne Gould Corporation Chairman, Sam Maling, said the rating is an independent endorsement of the Board’s view of MARAC.

“It confirms the Board’s strategy of further investment in financial services and the benefits of moving MARAC more towards the quality end of the market.”

ENDS

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