Chances of Kiwibank sale low, says S&P as it reaffirms current rating

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Standard & Poor's assesses the chance of a privatisation of Kiwibank as low and is keeping its AA minus rating of the state-owned bank unchanged as a result.

But it said any change in ownership would trigger a review.

S&P said yesterday its ratings of the bank were unchanged despite speculation about possible privatisation and also the announcement of chief executive Sam Knowles' retirement.

"Our ratings continue to reflect our expectation that notwithstanding the recent discussion on possible privatisation of Kiwibank, the risk of privatisation remains low in the medium term," said the credit-rating agency.

"Nevertheless, in our less likely downside scenario, privatisation of the bank would be expected to put downward pressure on the ratings."

Kiwibank's rating rests on the guarantee from its wholly Government-owned parent, NZ Post.

- NZPA