Standard & Poor's said it had placed Rabobank NZ's rating on negative "creditwatch" because of the parent company's decision to not renew its guarantee of the New Zealand operation from April next year.
S&P said the rural lending specialist had confirmed hat its unconditional guarantee from the parent, Netherlands-based Rabobank Nederland, would not be renewed when it expires on April 30.
"As a result of the decision not to renew the guarantee, Standard & Poor's is placing its 'AA-' long-term and 'A-1+' short-term issuer credit ratings on Rabobank New Zealand on CreditWatch with negative implications, as the obligations incurred by Rabobank New Zealand after April 30, 2015 will not be covered under a guarantee," S&P said in a statement.
"Nevertheless, we expect the ratings on Rabobank New Zealand will continue to benefit from our assessment that the parent will be likely to provide timely support to Rabobank New Zealand if needed, reflecting the subsidiary's high strategic importance to the group," S&P said.
S&P said that, following expiry of the parent guarantee, it was likely to lower the long-term issuer credit rating on Rabobank New Zealand by one-notch to 'A+', and the short-term rating to 'A-1', "incorporating our assessment of likely support from the parent".