S&P dishes out another three ratings

Fisher and Paykel Finance
It has assigned a BB rating to Fisher & Paykel Finance with a stable outlook. The rating means that the company will be eligible to apply for the extended government guarantee scheme.

S&P says the ratings reflect F&P Finance's exposure to the cyclical consumer segment, its reliance on continuing banker confidence and support, and S&P's view of its parent, NZX-listed Fisher & Paykel Appliances.

The finance company has a good market position in the New Zealand consumer finance segment, its diversified customer base, and its good risk-management capabilities, S&P says.

The outlook reflects S&P's expectations that the company's financial characteristics will remain stable in the medium term. The ratings could be raised if Fisher and Paykel Finance were to become more independent from its parent, along with ongoing strengthening of its financial profile--building on recent efforts to reduce funding risks and increase capital.