More finance company ratings

Both Compass Capital and Strategic Finance has had new ratings issued this week.

Friday, 3 November 2006

PIR security ratings range from 0 stars to 5 stars, with ratings of 2 1/2 stars and above considered "investment grade".

A full copy of the report can be downloaded here.

Strategic Finance given B1
Strategic Finance has been given an investment grade credit rating of B1 under the Rapid Ratings process being used in New Zealand.

"The company’s probability of default in the next twelve months is only 0.19%,” the rating says. This is the same level as its previous ratings.

"Strategic Finance continues its strong performance in the finance company sector and maintains its key differentiators from its natural competitors."

The company grew its business (measured in total balance sheet assets) by 26% to $499 million during the year and profitability at a 38% return on equity continues to be strong.

Strategic Finance’s business model continues to enable it to operate with very low loan losses which were only $38,292 in their financial year to June 30.

A change in shareholding, with Allco Principals Trust which is associated with the Allco Finance Group in Australia, taking a 50% shareholding in Strategic Finance’s parent company, has yet to flow through in benefits to Strategic Finance but is likely to enhance its strength by introducing new product lines and opening the door to a larger presence in the Australian market.

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