S & P revises SCF credit rating

South Canterbury Finance Limited acknowledged today that Standard & Poor’s has revised the Company’s long term credit rating to B-, the short term rating to C, and placed both ratings on Creditwatch Negative.

South Canterbury Finance Chief Executive Officer Sandy Maier says the Government’s appointment of statutory managers in respect of Mr & Mrs Hubbard had created uncertainty for the rating agency.

“For eligible investors, nothing has changed regarding the Crown’s extended retail deposit guarantee scheme which remains in place through to 31 December 2011.

“Investors should note that the Government has stated that South Canterbury Finance is specifically excluded from the statutory management order concerning Mr & Mrs Hubbard and certain of their business interests. Further, the Treasury has reaffirmed that the extended retail deposit scheme continues to apply to eligible investors in South Canterbury Finance.

“If anything, the rating action reinforces the determination of the directors and management to build on the good progress already achieved to turnaround the business of the Company.”

As a consequence of the change in credit rating, a memorandum amending the Company’s current prospectus will be registered as soon as possible.