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. Broadlands said it was pleased with its BB- credit ratings, "given that a number of New Zealand's foremost finance companies are only one notch higher". Broadlands CFO told interest.co.nz they are pleased with its BB- credit ratings and will work through the criteria given by Standard and Poors between now and October. "If we get the ratings up we will decide whether or not to take part in the scheme in October," he said.
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