NZ Post and Kiwibank ratings affirmed

Wednesday 11th March 2009

New Zealand Post has had its rating affirmed by Standard & Poor's (S&P).

Standard & Poor's (S&P) has affirmed New Zealand Post's rating of AA-/A-1+, while its outlook remains stable.

NZ Post-owned Kiwibank has also had its AA-/A-1+ rating and stable outlook affirmed.

"The ratings on NZ Post are underpinned by the current strength of the company's market position, its supportive relationship with the government and solid cash performance," S&P credit analyst Anna Hughes said.

The biggest risk to the ratings on NZ Post remains the impact of its ownership and guarantee of Kiwibank. The bank's credit quality remains weaker than its parent's traditional business because it has a modest market position, modest profitability and potential for further deterioration in asset quality, S&P said.

Comments from our readers

No comments yet