Pressure on finance firms

Standard & Poor's Ratings Services said some ratings could be subject to downward pressure. Photo / Thinkstock

Some smaller financial institutions could face downward rating pressure, particularly those operating in Canterbury, following Tuesday's earthquake.

Standard & Poor's Ratings Services said that while its initial expectation was that most ratings on financial institutions would remain unchanged and New Zealand's financial system would remain stable, some ratings could be subject to downward pressure.

The ratings agency also said it had an initial expectation that the major bank sector remained well placed at current rating levels.

"Our current belief is that the major banks are unlikely to see downward rating pressure stemming from the Christchurch earthquake. For smaller New Zealand financial institutions, be they banks or non-banks, downward rating pressure could emerge, particularly on those institutions that have a greater geographical presence in Christchurch and the surrounding Canterbury region."