Instant Finance "investment grade": Rapid Ratings
Instant Finance has been given a B3 credit rating and a tick as investment grade by ratings agency Rapid Ratings.
Tuesday, September 21st 2004, 7:06PM
Rapid Ratings says the business of Instant Finance is “of reasonably good quality and that with respect to the risk of non-payment of corporate debts and/or the degree of risk of insolvency, the company of a moderate risk and more subject to fluctuations in market conditions.”
Rapid Ratings says a B3 means there is a moderate risk of non-payment of corporate debts, and that a company with this rating has “reasonably good quality” assets. It says a B3 is equivalent to a BBB- Standard and Poors rating and a Baa3 Moody’s rating.
The agency says that Instant Finance has been achieving very good financial results.
“It has a good record of profitability and is performing at a high level of financial efficiency.” The company has achieved solid growth in recent years in both asset and tax-paid profits.
Instant Finance is an established business with family associations going back 30 years.
Rapid Ratings says this is Instant Finance’s first rating and it is valid unitl September 2005, unless there is a material change in the company.
The only other New Zealand companies who have publicly acknowledged they have been rated by Rapid Ratings are Strategic Finance and Bridgecorp. Strategic has a B1 rating. Bridgecorp has a B4 rating, which is one notch below “investment grade”.
Good Returns understands about half a dozen other companies have been reviewd by Rapid Ratings but they have not released their reports. One Wellington-based company is known to have gone through the process about a month ago with the aim of getting a rating for public release.
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