UDC strength reflected in improved ‘AA’ rating

For Immediate Release

Thursday 5 April 2007

UDC Finance strength reflected in improved ‘AA’ credit rating

UDC Finance has received an improved credit rating of ‘AA’ by international ratings agency Standard & Poor’s.

“We’ve held a very strong credit rating of ‘AA-‘ since 2002 and this increased credit rating, to ‘AA’, incorporates our sound business position in the market,” UDC General Manager Malcolm Tilbrook said.

The ‘AA’ credit rating is the highest of any New Zealand finance company accepting money from investors. It reflects the company’s material position within ANZ National, its strong brand and market profile, and good depth of senior management team, according to Standard & Poor’s.

“It’s a great result for us and our investors, as it acknowledges that we’re in a very strong position as we drive forward with a number of improvements to our business,” Mr Tilbrook said.

Standard & Poor’s credit ratings are based on a comprehensive independent assessment of a company taking into account both business and financial risks.

Ratings of 'BB' and below are regarded as having significant speculative characteristics.

“A strong credit rating is a very good indicator of the certainty of your investment,” Mr Tilbrook said.

“Generally, when considering interest rates available in the market, it’s important for investors to remember the trade off between risk and return – a high interest rate may well indicate a higher level of risk.”

ENDS

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