Moody’s might drop Kiwibank

Moody's Investors Service said it placed Kiwibank Ltd.’s Aa3/P-1 deposit and issuer ratings on review for downgrade.

The bank's Aa2(cr)/P-1(cr) counterparty risk assessment and aa3 adjusted baseline credit assessment were also placed on review for downgrade.

The baa2 baseline credit assessment was affirmed.

Moody’s said the action is a result of Kiwibank's announcement that its parent, New Zealand Post, intends to remove its guarantee on Kiwibank's payment obligations. Should the guarantee be removed, the change would only apply to future obligations. Hence the bank's Aa3 backed senior unsecured and provisional Aa3 backed senior unsecured medium-term note program ratings, which represent Kiwibank's existing senior unsecured obligations, are not impacted by this announcement.

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