S&P gives tick to Securities Commission investor web site

By NZPA

Thursday 8th November 2007

International ratings agency Standard & Poor's has given a tick to the Securities Commission's new web site aimed at improving the country's financial literacy.

The commission's web site (http://www.looklearninvest.org.nz) includes details about credit ratings, and information to help investors understand the risks and rewards of investing.

S&P's credit ratings rated the probability of default of an issuer not making payment on its obligations, on time and in full. Probability of default is a key component in investor decisions concerning risk, S&P's credit analyst Shaun Evans said.

"Standard & Poor's is strongly supportive of initiatives that will improve investor education and believes that a greater understanding of credible credit ratings will assist New Zealand investors to make more informed choices concerning risk," said Evans said.

Ten finance companies have collapsed in the past 18 months, including seven this year as a result of a global credit crunch, owing investors more than $1 billion.

The Government is proposing improved regulations for finance companies, including the requirement to have a Reserve Bank-approved credit rating.

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