tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Saturday, July 11th, 12:05PM

Mortgages

Mortgage Rates Daily Commentary
Thursday 9 July 2020  Add your comment
Why bank changes are good for advisers

The days of face-to-face banking may be numbered with the big banks closing branches around the country in the wake of Covid-19, but this change could work out well for advisers. [READ ON]

rss
Latest Headlines

S&P, Moodys downgrade Kiwibank’s rating

Both Standard & Poors and Moody’s have downgraded Kiwibank’s credit rating in response to the expiry of a guarantee following ownership changes last year.  

Wednesday, March 1st 2017, 4:47PM

Once 100% owned by NZ Post, as of late last year Kiwibank is now owned by NZ Post, ACC and the NZ Super Fund.

Today’s move from the credit agencies was prompted by the expiry of an unconditional guarantee on Kiwibank’s payment options from its majority owner, NZ Post.

S&P has lowered the long-term issuer credit rating on Kiwibank to 'A' from 'A+' and affirmed the short-term issuer credit rating at 'A-1'.

Its long-term issuer credit rating on Kiwibank now incorporates three notches of uplift above the bank's stand-alone credit profile.

S&P credit analyst Andrew Mayes said this is because Kiwibank is highly likely to receive extraordinary support from the New Zealand government, if needed.

“This is because we consider that Kiwibank plays an important role to the New Zealand government and that the bank has a very strong link to the government as a result of its indirect ownership by the government.”

Mayes said the stable outlook on Kiwibank reflects their expectation that the bank will retain its focus on relatively lower-risk residential lending while maintaining its risk-adjusted capital ratio above 10%.

“It also reflects our expectation that the bank's current market position and funding profile will remain largely unchanged over the next two years.”

Moody's downgraded Kiwibank’s long-term issuer and deposit ratings to A1 from Aa3, but said the rating outlook is stable.

In a statement, the agency said the rating downgrade is a direct result of the removal of the NZ Post guarantee which they believe has introduced some uncertainty about the potential for parental support.

However, it said it believes that Kiwibank will continue to benefit from a very high likelihood of government support, given that it will remain indirectly owned by the government.

“Kiwibank's position as the key domestic player in the New Zealand banking system and its position as a government-owned bank also support Moody's view that there is a very high probability that it will receive government support -- via its government-owned shareholders -- in case of need.”

Tags: Kiwibank

« Decline in investor lending continuesInterest rate risk equally balanced: RBNZ »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA 4.55 3.19 3.19 3.49
AIA Special - 2.69 2.69 2.99
ANZ 4.44 3.15 3.25 ▼3.39
ANZ Special - ▼2.55 ▼2.69 ▼2.79
ASB Bank 4.45 3.19 3.19 3.49
ASB Bank Special - 2.69 2.69 2.99
Bluestone 4.44 4.44 4.44 4.44
BNZ - Classic - 2.65 2.69 2.99
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
BNZ - Std, FlyBuys 4.55 3.25 3.29 3.59
Lender Flt 1yr 2yr 3yr
BNZ - TotalMoney 4.55 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.45 - - -
Credit Union Baywide 5.65 4.75 4.75 -
Credit Union South 5.65 4.75 4.75 -
First Credit Union Special 5.85 3.35 3.85 -
Heartland 3.95 2.89 2.97 3.39
Heartland Bank - Online - - - -
Heretaunga Building Society 4.99 4.35 4.45 -
HSBC Premier 4.49 2.60 2.65 2.80
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 3.99 2.58 2.68 2.79
Kainga Ora 4.43 3.29 3.39 3.85
Kiwibank 3.40 3.40 3.54 4.00
Kiwibank - Capped - - - -
Kiwibank - Offset - - - -
Kiwibank Special 3.40 2.65 2.79 3.25
Liberty 5.69 - - -
Nelson Building Society 4.95 3.45 3.49 -
Pepper Essential 4.79 - - -
Lender Flt 1yr 2yr 3yr
Resimac 3.49 3.45 3.39 3.69
SBS Bank 4.54 3.29 3.19 3.49
SBS Bank Special - 2.79 2.69 2.99
The Co-operative Bank - Owner Occ 4.40 ▼2.69 ▼2.75 ▼2.99
The Co-operative Bank - Standard 4.40 ▼3.19 ▼3.25 ▼3.49
TSB Bank 5.34 ▼3.35 3.49 3.79
TSB Special 4.54 ▼2.55 2.69 2.99
Wairarapa Building Society 4.99 3.75 3.99 -
Westpac 4.59 4.15 4.09 4.49
Westpac - Offset 4.59 - - -
Westpac Special - ▼2.55 2.69 2.79
Median 4.55 3.19 3.22 3.39

Last updated: 10 July 2020 9:02am

Previous News

MORE NEWS»

News Bites
Compare Mortgage Rates
Compare
From
To
For

To graph multiple lenders, hold down Ctrl key while clicking in list box

Also compare rates to OCR
Find a Mortgage Broker

Add your company

Use map
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com