Published 18 September 2007Ratings organisation Standard & Poor’s has created a new web page “to provide New Zealand financial advisors, investors & market influencers & participants with a one-stop credit-rating toolkit for a better understanding of risks in New Zealand’s NBDT (non-bank deposit-taking) institutions sector”.
“The recent failures of 9 New Zealand finance companies have affected retail debentureholders to the tune of over $1 billion. At the same time, the New Zealand NBDT sector & financial advisory industry are undergoing a generational change in industry regulation & market dynamics. Credible credit ratings are one of the cornerstones of Cabinet’s June decision to develop new proposals for the regulation of deposit-takers: “Standard & Poor’s believes that credible credit ratings will assist New Zealand financial advisors to better understand risks in the NBDT sector. This is important, considering increasing responsibilities upon New Zealand financial advisors in the provision of prudent advice. “As part of Standard & Poor’s commitment to New Zealand, and more generally toward an improvement in financial literacy concerning what credible credit ratings mean in the context of the NBDT sector, we believe this web page will serve as a valuable reference guide.”
Attribution: Company statement, story written by Bob Dey for this website.