“The rating underscores Strategic Finance’s strong performance in a very competitive market,” chief executive Kerry Finnigan says.
Rapid Ratings describes the company as being of “very good quality” and “investment grade”, is a moderate to low risk and subject to fluctuations in market conditions.
Rapid Ratings noted that Strategic has very high governance standards, with “very good levels of accountability, transparency and performance management”.
It also stated that the company has a strong board and senior management team, which has been bolstered by the appointment of Finnigan as chief executive.
Strategic posted a net after-tax profit of $25.5 million for the year ended June 30, an increase of 35% over 2004. Net cash flow increased by 45% to $25.6 million, while total assets grew by 24% to $397.3 million and total liabilities grew just over 24% to $339.7 million. Minimal bad debts of $73,922 were written off, while the company maintained a strong gearing ratio of 14.03%, well above the industry average of 8.26%.
Rapid Ratings also assigned a B1 credit rating to the debenture stock issued by Strategic Finance. The ratings applies through to November 2006.
| « Bridgecorp declared investment grade | Finance companies shoring up for tougher times » |
Special Offers
© Copyright 1997-2024 Tarawera Publishing Ltd. All Rights Reserved