Standard&Poor's said the credit rating of PSIS Ltd may be raised if the mutual company continues to successfully manage its low-risk and sound credit profile.The credit rating company today revised its rating outlook on PSIS to positive, from stable.
Standard&Poor's said the credit rating of PSIS Ltd may be raised if the mutual company continues to successfully manage its low-risk and sound credit profile.
The credit rating company today revised its rating outlook on PSIS to positive, from stable. It affirmed the BB plus long term rating.
The rating could be raised to BBB minus if the company continued to successfully manage its low-risk and sound credit profile through to 2011, a period when the nonbank deposit-taking sector in New Zealand was expected to come under pressure, Standard&Poor's credit analyst Peter Sikora said.
Industry pressures include the expiry of the existing government retail deposit guarantee on October 12, heightened competition for retail funding, and the prospect of additional failures in the nonbank deposit-taking sector, which could undermine confidence in the sector.
The rating affirmation reflects PSIS' strong member support and its sound financial profile through the recent very difficult operating environment in New Zealand, particularly for nonbank deposit-takers.
PSIS' commitment to maintaining a low credit risk profile by focusing lending activities on low-risk residential mortgage lending has underpinned its solid financial profile.
PSIS is 100% owned by its customers.
