Hanover gets D Fitch rating

Hanover Finance was yesterday handed a D, or default, rating by Fitch Ratings five days after it suspended repayment of existing deposits.

The credit rating company has faced questions about what role it plays in informing investors in the non-bank finance sector.

Fitch said yesterday it cut Hanover's long and short-term foreign currency Issuer Default Ratings to "D" because it failed to meet financial obligations by 5pm on July 25. This resulted in an event of default as defined in its debenture trust deed.

Hanover is owned by Mark Hotchin and Eric Watson.