Analysts Standard & Poor's announced today that they will launch a new ratings scale to measure the relative financial strength of New Zealand non-bank finance entities.
The launch of the new scale was based on strong industry support for the proposed ratings scale and methodology, as well asa significant number of finance entities that were committed to undertaking and releasing a rating, the agency said.
The relative strength ratings would provide an opinion on the default risks of New Zealand non-bank finance entities.
The ratings scale and symbology were unique, and tailored specifically for New Zealand finance companies, building societies, credit unions, and mortgage trusts, Standard & Poor's said.
"Our service has been introduced in response to an overwhelming demand from investors, regulators, and the finance entities themselves for credible ratings that enable comparisons within the non-bank sector," managing director, corporate and government ratings said.
Standard & Poor's would soon start its analysis and site visits with the initial entities to be rated, with a view to announcing the first ratings in early 2007.
