S&P revises credit rating outlook on Heartland Bank to 'Developing'

Wednesday 30th October 2013

Heartland New Zealand Limited (NZX: HNZ ) advises that Standard & Poor’s (S&P) has revised its credit rating outlook on HNZ subsidiary Heartland Bank Limited (Heartland) to “Developing” from “Negative”, reflecting a trend of strengthening business position for Heartland amid concerns relating to New Zealand’s macro-economic vulnerabilities.

The “Developing” outlook reflects the prospect that Heartland’s rating could be raised or lowered within the next two years, depending on different but similarly probable scenarios. The S&P report states that:

• Heartland’s rating could be raised if Heartland successfully further developed its business position in the next 6-12 months, and New Zealand’s macro-economic vulnerabilities do not worsen.

• Heartland’s rating could be lowered if credit concerns relating to New Zealand’s macro-economic vulnerabilities escalated before any upward revision of Heartland’s business position.

Heartland is pleased with the change in outlook, and in particular with S&P’s acknowledgement of a trend of strengthening business position for Heartland.

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