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UDC Finance rating affirmed

Wednesday 25th June 2008

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UDC Finance today had its rating affirmed by Standard & Poor's, with a ranking of 'AA/A-1'. The outlook remains stable.

The ratings are underpinned by UDC's core status within the Australia and New Zealand Banking Group's (AA/Stable/A-1+) New Zealand operations, which include UDC's sole owner ANZ National Bank (AA/Stable/A-1+).

"We consider that UDC is riding out current difficult local industry conditions better than many New Zealand finance companies, evidenced in part by its higher debenture reinvestment rates," S&P credit analyst Derryl D'Silva said. "Furthermore, UDC's half-year results for the six months ended March 31 2008 were within our expectations."

The stable outlook reflects primarily that of its ultimate parent, ANZ Group, and the close integration with its immediate parent ANZ National. A weakened commitment to asset finance by ANZ Group will lessen S&P's view on the importance of UDC to the group's future strategy, which will likely result in a lower rating.

UDC is expected to continue to soundly manage risks, underpinned by a predominantly organic growth strategy.

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