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Credit ratings agency Standard & Poor's has lowered its rating outlook for Kiwibank to negative from stable.
The move follows a similar rating action on the bank's parent, New Zealand Post Ltd.
S&P said the negative outlook reflected NZ Post's flattening growth in its core postal business and Kiwibank's increasing influence on its parent's business make-up.
The rating reflected the benefit of NZ Post's unconditional guarantee, which covers all of the bank's senior obligations.
"On a stand-alone basis, Kiwibank has a modest market position, an unseasoned loan portfolio in a very competitive market, and marginal profitability," S&P credit analyst Sharad Jain said.
"However, we believe that profitability improvement and business growth are likely to continue in the medium term, supported by the bank's good management team, good access to retail funds, and satisfactory capitalisation."
- NZPA
