About Us  |   Advertise  |   Contact Us  |   Terms & Conditions  |   RSS Feeds
deposit rates

Another credit union gets S&P rating

Standard & Poor's has assigned a BB rating for Hamilton-based First Credit Union, keeping the not-for-profit financial institution eligible for the government's extended retail deposit guarantee scheme.

Wednesday, 9 September 2009

S&P gave the credit union a BB rating on its long-term counter-party credit rating and a B rating on its short-term counter-party credit rating, both with a stable outlook.

"The stable outlook factors in our expectation that FCU will soon reduce its property-development-type lending exposures, and that its financial profile will improve in the current fiscal year as a result of increased earnings stemming from interest-margin improvement and lower loan provisioning," said S&P analyst Peter Sikora.

First Credit Union's "business position has underpinned its ability to generate good interest margins to contend with a recent increase in delinquent loans, and to contend with recent liquidity- and funding-based credit-market pressures," he said.

The BB rating will let the firm sneak into the government's extension to the retail guarantee, which was unanimously passed in Parliament yesterday and has tougher requirements than the initial guarantee set up by the Labour-led government last year.

First Credit Union will have to pay a 60 basis point fee under the extended guarantee, which comes into effect from October next year. It is covered by the existing government scheme.

Sikora said he expects the firm's business and financial profiles will come through the country's worst recession in more than 30 years, despite its exposure to lower socioeconomic customers in its personal-loan portfolio and its exposure to property-development mortgages.

FCU's Mortgage Rates can be seen here

And its Investment rates here

Commenting is closed


Printable version


Email to a friend
Newsletter Signup

Weekly Updates including news and commentary

Today's Best Bank Rates
Rabobank 0.75
Based on a $50,000 deposit    More Rates »
Today's Top 5 Deposit Rates
NZCU Auckland 1.00 Success Saver
First Credit Union 0.75 Online Savings
Rabobank 0.75 Rabobank PremiumSaver - max rate
Heretaunga Building Society 0.60 On Call
NZCU Baywide 0.60 Success Saver
Based on a $50,000 deposit    More Rates »
Find a Rate
Show me the rates for
invested over
Use the full calculator
Cash PIE Rates
Institution Rate 30% 33%
ANZ 0.10 0.10 0.11
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
ASB Bank 0.15 0.16 0.17
BNZ 0.10 0.10 0.10
Heartland Bank 0.40 0.40 0.40
Kiwibank 0.05 - -
Kiwibank 0.25 - -
Nelson Building Society - - -
SBS Bank - - -
TSB Bank 0.25 0.25 0.26
Westpac 0.20 0.21 0.23
Westpac 0.05 0.05 0.05
Westpac 0.25 0.26 0.27

More »

Previous News
Latest Trends
Coming Soon

Disclaimer - Every possible effort has been made to keep the information in the tables and on this site as accurate as possible, however, neither the publisher, Tarawera Publishing, nor anyone engaged to compile the rates and this site accept any liability for inaccuracies or any loss suffered as a result. It is strongly advised that readers check loan details with providers. The full terms and conditions of this site can be found here.

© Copyright 1997-2021. Tarawera Publishing Ltd. All Rights Reserved.