Govt grants extended guarantee to Equitable Mortgages

Treasury has announced Equitable Mortgages Ltd, which has a BB credit rating from Standard and Poor's with a negative outlook, has received an extended government guarantee until the end of 2011. More detail on the terms of the extended guarantee are on the Treasury website here. Equitable is controlled by the Spencer Family. The existing government deposit guarantee scheme is due to expire in October this year, but finance companies with BB credit ratings or better are eligible to apply for an extension until the end of next year. Equitable is only the second to be granted an extension after Marac Finance. Standard and Poor's latest rating report on Equitable is available here.