Rates Round Up
NZ Association of Credit Unions gets BB rating; Bank status helps SBS boosts deposits; Dorchester buys Emerald Hotel; Lombard still hanging on for reverse takeover with ACIL; CBS Canterbury main rate mover.
Sunday, November 29th 2009, 10:14PM
NZ Association of Credit Unions gets BB rating
The New Zealand Association of Credit Unions has been assigned a BB long-term counterparty credit rating by Standard & Poor's, with a B short-term rating.
Though this qualifies it for the government's extension to the retail deposit guarantee scheme, it will not be easy sailing as the rating agency placed it on a negative outlook.
"NZCAU's credit profile is heavily tied to the success and strength of its member credit unions," said credit analyst Peter Sikora. "To see the outlook revised to stable, NZACU would need to maintain its solid and relevant market position as a service provider to the New Zealand credit union sector and improve its profitability and capital adequacy."
Bank status helps SBS boosts deposits
SBS Bank has grown retail deposits more than 15%, or about $300 million to $2.23 billion, in the past 12 months since it became a bank. The bank made a $6.5 million net profit in the six months ended Sept. 30 from a $5.4 million profit a year earlier.
Dorchester buys Emerald Hotel
Dorchester Finance has bought the Emerald Hotel in Gisborne for $12.6 million from Guardian Trust as it looks to take ownership of its properties to help boost value. The finance company, which has paid about 35% of the principal owed to debenture holders under its deferred repayment plan, is keen to settle its outstanding debt with investors to get out of its moratorium.
Lombard still hanging on for reverse takeover with ACIL
Lombard Group, whose finance unit owes 4,400 investors some $127 million, is still waiting on regulatory approvals and the completion of an independent appraisal before it can complete its reverse takeover by Perth-based insurer Australian Consolidated Insurance.
The company formerly chaired by ex National Party MP Doug Graham, posted an $80,000 loss in the six months ended September 30, compared to an $18.2 million loss a year earlier.
CBS Canterbury main rate mover
CBS Canterbury took the lead in deposit rate movements last week, lifting its rates on terms of $1,000 by 50 basis points on three-, five-, nine-, 12- and 18-month and two- and three-year deposits, while it boosted its six-month terms by 25 points. It raised its $5,000 deposits 25 points for five-month terms, 10 points for six-months, 20 points for nine-months and 25 points for 12-month terms. It increased 18-month terms, two-year and three-year terms by 65 basis points.
ASB was the only bank to dabble in deposit rates this week, cutting its six-month terms by 20 basis points, while boosting its 12-month deposits 15 points. The bank cut 10 basis points from its two-year and five-year terms, and 35 points from its three-year terms.
Nelson Building Society raised its six-month terms 20 points and its nine-month terms by 35 points, while General Finance raised its three-, four- and five-year terms 40, 50, and 50 basis points respectively.
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