KEY POINTS:
Analysts Standard & Poor's announced today that they will launch a new ratings scale to measure the relative financial strength of New Zealand non-bank finance entities.
The launch of the new scale was based on strong industry support for the proposed ratings scale and methodology, as well as a significant number of finance entities that were committed to undertaking and releasing a rating, the agency said.
The relative strength ratings would provide an opinion on the default risks of New Zealand non-bank finance entities.
The ratings scale and symbology were unique, and tailored specifically for New Zealand finance companies, building societies, credit unions, and mortgage trusts, Standard & Poor's said.
"Our service has been introduced in response to an overwhelming demand from investors, regulators, and the finance entities themselves for credible ratings that enable comparisons within the non-bank sector," managing director, corporate and government ratings said.
Standard & Poor's would soon start its analysis and site visits with the initial entities to be rated, with a view to announcing the first ratings in early 2007.
- NZPA
