South Canterbury rating cut to CC

South Canterbury Finance says that Standard & Poor's has revised the Company's long term credit rating to CC, maintained the short term rating at C and the outlook for both the long and short term credit rating as Negative.

South Canterbury Finance Chief Executive Officer Sandy Maier says good progress is now being made on the recapitalisation of the business with the target of making an announcement on 31 August 2010.

"This will be of far more significance for all stakeholders and we would anticipate that Standard & Poor's will want to undertake a review of the Company's credit rating soon after."

"There is confidence amongst all parties involved in the recapitalisation process that a favourable outcome can be achieved and that, following the completion of that process South Canterbury Finance can continue to operate as an active supporter of small and medium business enterprises."