Heartland gets upgrade
Thursday, May 22nd 2014, 10:35AM
Standard & Poor’s has raised its long-term issuer credit rating on Heartland Bank from ‘BBB-’ to ‘BBB’ . At the same time, it revised the outlook of the rating to negative.
The agency says Heartland’s business position has strengthened over the past three years as it transitions away from non-core assets toward its core niche markets.
“In our view the improvement in Heartland’s business position is evidenced by the deepening of the bank’s position in specialist target market segments such as vehicle asset finance, invoice financing, livestock financing, and reverse mortgage loans, and the progress made by Heartland to exit its non-core property portfolio as well as the gradual decline in Heartland’s residential mortgages lending portfolio (also a non-core lending area for the bank), where levels of contestability is significantly higher.”
The negative outlook reflects the negative economic risk trend assigned to the New Zealand banking system and our concerns around economic imbalances.
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