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

Avanti Finance gets rating from S&P

Finance company Avanti Finance has been given a BB- rating by Standard & Poor's, and a negative outlook.

Friday, 25 September 2009

"The counterparty credit ratings on Avanti reflect the company's moderate liquidity and susceptibility to funding pressures, stemming from a concentrated funding base that is heavily reliant on ongoing debenture investor support and access to bank funding from sister company Galatos Finance," S&P credit analyst Peter Sikora says.

"That said, Avanti has enjoyed good support from its debenture investor base, on the back of a long-standing relationship with many investors and its good operating performance, and the company has reasonable capacity to manage its liquidity position in the short term if its debenture-reinvestment experience were to materially deteriorate."

Although Avanti's credit-loss experience has been well managed to date, the company's credit profile is moderated by the high-risk profile of its loan-receivables portfolio, which exhibits a high level of loan arrears. 

Favourable features of Avanti's credit profile include its strong capital-adequacy ratio and interest margins, which provide good capacity for the company to absorb materially higher credit losses.

S&P says Avanti's management team and risk-management framework are considered sound and positive credit factors, although the company does have a high reliance on its two key shareholders, Glenn Hawkins and Steve Eltringham..

"The negative rating outlook recognises Standard & Poor's current negative bias on the New Zealand finance-company sector, uncertainty around Avanti's ability to manage its liquidity position through 2010 (stemming from changes to the New Zealand government's deposit-guarantee scheme and the imposition of other regulatory requirements on New Zealand nonbank deposit-taking companies), and an expectation that profitability may come under pressure from some further contraction in interest margins and potentially higher credit costs," Sikora said.

 

 

Commenting is closed

print

Printable version

print

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
InstitutionRateProduct
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
MORE »

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.