Rates Round Up

NZ Association of Credit Unions gets BB rating
The New Zealand Association of Credit Unions has been assigned a BB long-term counterparty credit rating by Standard & Poor's, with a B short-term rating.

Though this qualifies it for the government's extension to the retail deposit guarantee scheme, it will not be easy sailing as the rating agency placed it on a negative outlook.

"NZCAU's credit profile is heavily tied to the success and strength of its member credit unions," said credit analyst Peter Sikora. "To see the outlook revised to stable, NZACU would need to maintain its solid and relevant market position as a service provider to the New Zealand credit union sector and improve its profitability and capital adequacy."

Bank status helps SBS boosts deposits
SBS Bank has grown retail deposits more than 15%, or about $300 million to $2.23 billion, in the past 12 months since it became a bank. The bank made a $6.5 million net profit in the six months ended Sept. 30 from a $5.4 million profit a year earlier.