Yellow Pages offer halved

Depositrates.co.nz News Round Up: Yellow Pages offer halved, Fitch clarifies PFG rating, Instant Finance keeps its B3 rating and S&P drops SAIL rating.

Monday, 27 August 2007

Reports say the cut in size is due to volatility in credit markets which may make it difficult to raise money.

A press conference on the offer has been postponed from Monday to Wednesday. A media statement said the delay was due to technical difficulties in registering the offer document.

Money raised in the offer, which has an interest rate of 11%, will be used to help CCMP Capital and Canadian pension fund Teachers' Private Capital fund the purchase of Yellow Pages from Telecom. The consortium paid $2.2 billion for the business in March.

Fitch clarifies Property Finance ratings
Rating agency Fitch has clarified some reports regarding its involvment with Property Finance Group. It says it has not rated the company which has listed on the NZAX.

However, Property Finance securitised some of its loans and listed these on the market through a subsidiary RMB Trustee and these Rated Mortgage Bonds are rated.

RMB Trustee is a separate legal entity to PFG but shares common directorships, and is a related entity.

Instant Finance keeps it rating
Axis Ratings has reaffirmed its rating on Instant Finance as a B3, and described it as being "moderate risk, subject to market conditions", and of "reasonably good quality".

Axis, which was formerly Risk Analysis, and prior to that Rapid Ratings, describes the outlook for Instant Finance as being "stable" for the next 12 months.

Axis says Instant Finance has done well to maintain its rating in more challenging times for finance companies.

Instant Finance has taken a conservative approach to its consumer lending in order to maintain liquidity due to its lack of bank facilities. Reduced revenues combined with an increase in impaired asset expense resulted in a 49% drop in net profit before tax.

S&P drops SAIL rating
Standard & Poor's has lowered its rating on the principal of the $91.5 million Series 2006-1 credit-linked notes (CLNs) issued by Credit Sail and removed it from CreditWatch with negative implications.

This action follows the lowering and removal from CreditWatch negative of the rating on underlying funds.

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