Non-bank deposit taker, FE Investments has had its ratings reaffirmed following a capital raise by its parent company.
FEI's parent, FE Investments Group, has been strengthened with the recent injection of A$3.3 million in ordinary shares. Ratings agency S&P now apply lower risk weights to FEI's credit exposures in New Zealand reflecting its view that lenders in New Zealand now face reduced economic risks.
S&P has consequently affirmed its 'B' long-term and 'B' short-term issuer credit ratings on FE Investments. It has removed the ratings from CreditWatch, where it had placed them with negative implications earlier this year. The outlook is stable.
"We have removed our ratings on FEI from CreditWatch with negative implications reflecting our view that FEIG now faces relatively low risk that its RAC ratio will fall below 15% over the next 12 months."
"The stable outlook reflects our expectation that FEIG will maintain very strong capital levels at above 15%, with sustainable business and operating performance in the next year."
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