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South Canterbury Finance Limited Credit Rating Affirmed

Fuseworks Media
Fuseworks Media
South Canterbury Finance Limited Credit Rating Affirmed

South Canterbury Finance Limited announced today that Standard & Poor's has completed a review of the Company's long term debt rating and confirmed the current rating of BB, (Creditwatch Negative).

Welcoming the outcome of the review, Chief Executive Officer Sandy Maier says Standard & Poor's recognised the progress made in improving the Company's credit profile in the last six months through the work done to restructure the Company and strengthen its position as a viable business.

South Canterbury Finance has also been accepted into the Crown's Extended Retail Deposit Guarantee Scheme which provides eligible investors with an explicit guarantee of repayment in full, up to the limit allowed, through to 31 December 2011 that would be unaffected by rating actions, Mr Maier says.

"There is much still to do to restore South Canterbury Finance to its position as a leading provider of finance for business growth and development and we are making good progress.

"While time is of the essence in getting South Canterbury Finance back on track to doing what it does best, the directors and management believe executing the required steps in an orderly fashion will best serve all stakeholders in the long term. We intend getting what is required to be done right first time, even if it takes a little bit longer than the preference of the rating agency."

Good progress had been made to actively manage the loan book and loan repayments from borrowers.

"Having built up liquidity in recent months we are confident the measures are in train to ensure we maintain our record of making all interest payments and redemptions as they fall due," Mr Maier says.

Brokers and financial intermediaries have acknowledged the competitive rates offered in the latest prospectus and, in particular, the benefit of South Canterbury Finance being one of only four institutions currently able to offer investments with the benefit of the Crown Extended Retail Deposit Guarantee Scheme. Applications from new investors have shown a pleasing uptrend in the last few days.

"We are actively in the market attending to debenture maturities with a range of measures, including early reinvestment options, to allow investors to enjoy the full benefit of the Crown Extended Retail Deposit Guarantee Scheme," Mr Maier says.

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