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Credit Rating.

The creditworthiness of Fisher & Paykel Finance Limited was first rated by Standard & Poor’s Rating Services on 19 February 2010.  The local currency (New Zealand dollar) long-term issuer credit rating assigned to us at that time was BB (Outlook Stable).

The rating outlook assigned by Standard & Poor’s assesses the potential direction of a long-term issuer credit rating over the intermediate term (typically six months to two years).  A stable outlook means that a rating is unlikely to change over the intermediate term.

On 27 October 2015, pending the outcome of the proposed sale of the Fisher & Paykel Finance Group to the Purchaser, Standard & Poor’s changed its outlook on the Company from “Stable” to “CreditWatch” with developing implications.

On 10 June 2016, following a review of Fisher & Paykel Finance Limited’s creditworthiness post the sale of the Fisher & Paykel Finance group to Flexi Group New Zealand Limited, Standard and Poor’s affirmed Fisher & Paykel Finance Limited’s credit rating at BB (Outlook Stable).

On 31 October 2016, Standard & Poor’s announced that it was revising its outlook on 25 Australian financial institutions to negative on the basis that the economic risks facing all financial institutions operating in Australia are rising due to recent strong growth in private sector debt and residential property prices.  This revision included its rating of Fisher & Paykel Finance Limited reflecting Standard and Poor’s opinion that Fisher & Paykel Finance Limited’s ultimate parent company FlexiGroup Limited faced pressures on its group credit profile similar to those faced by other Australian financial institutions.

Fisher & Paykel Finance Limited’s long-term issuer credit rating was affirmed as BB, and as such our overall rating is now BB (Outlook Negative).

The ratings assigned to us are statements of opinion issued by S&P, which is a rating agency approved under section 157J of the Reserve Bank of New Zealand Act 1989 (see www.standardandpoors.com). They are not statements of fact, an endorsement of Fisher & Paykel Finance Limited, or a recommendation to buy, hold or sell securities.

 


Standard and Poor’s long-term issuer credit ratings categories

AAA An obligor rated ‘AAA’ has extremely strong capacity to meet its financial commitments. ‘AAA’ is the highest issuer credit rating assigned by Standard & Poor’s.
AA An obligor rated ‘AA’ has very strong capacity to meet its financial commitments. It differs from the highest-rated obligors only to a small degree.
A An obligor rated ‘A’ has strong capacity to meet its financial commitments but is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligors in higher-rated categories.
BBB An obligor rated ‘BBB’ has adequate capacity to meet its financial commitments. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitments.
BB An obligor rated ‘BB’ is less vulnerable in the near term than other lower-rated obligors. However, it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions which could lead to the obligor’s inadequate capacity to meet its financial commitments.
B An obligor rated ‘B’ is more vulnerable than the obligors rated ‘BB’, but the obligor currently has the capacity to meet its financial commitments. Adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitments.
CCC An obligor rated ‘CCC’ is currently vulnerable, and is dependent upon favourable business, financial, and economic conditions to meet its financial commitments.
CC An obligor rated ‘CC’ is currently highly vulnerable.


Plus (+) or minus (-)

The ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.

 


^ Please note that our Rates Calculator is only a guide and is not intended to offer any financial advice. Fisher & Paykel Finance Limited is not to be held liable for any direct, special, incidental, indirect or consequential damages or monetary losses of any kind arising out of, or in connection with the use of this Rates Calculator. Please speak to an independent financial advisor for professional guidance.