SCF placed on CreditWatch negative

S&P has placed its ‘BB+' long-term rating on the New Zealand-based finance company on CreditWatch with negative implications.

This rating action follows the rating agency's concern that SCF's risk profile has increased since lowering the ratings on the company on August 13, 2009.

A CreditWatch Negative listing by S&P implies a one-in-two likelihood of the rating being lowered within the next three months.

"Our concerns centre on increasing pressure on liquidity; still-weak asset quality; and governance matters including, but not limited to, related party exposures," S&P said in a statement.