S&P cuts South Canterbury's rating - again

Friday 20th August 2010

South Canterbury Finance says that Standard & Poor's has revised the Company's long term credit rating to CC, maintained the short term rating at C and the outlook for both the long and short term credit rating as Negative.

South Canterbury Finance Chief Executive Officer Sandy Maier says good progress is now being made on the recapitalisation of the business with the target of making an announcement on 31 August 2010.

"This will be of far more significance for all stakeholders and we would anticipate that Standard & Poor's will want to undertake a review of the Company's credit rating soon after."

"There is confidence amongst all parties involved in the recapitalisation process that a favourable outcome can be achieved and that, following the completion of that process South Canterbury Finance can continue to operate as an active supporter of small and medium business enterprises."

"In the meantime, South Canterbury Finance is comfortable with its liquidity position and continues to meet all obligations as they fall due."

South Canterbury Finance continues to enjoy the Crown's extended retail deposit guarantee scheme which remains in place through to 31 December 2011.

"Nothing has, or will change, to alter the protection that eligible investors enjoy under that scheme," Mr Maier says.

As a consequence of the change in credit rating, a memorandum amending the Company's current prospectus will be registered as soon as possible.

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