Fitch downgrades Kiwibank

Fitch Ratings said it downgraded Kiwibank Ltd.'s long-term foreign-currency issuer default rating to AA- from AA and its long-term local-currency issuer default rating to AA from AA+ following the removal of the guarantee from New Zealand Post.

The outlook is stable.

The actions resolve the Rating Watch negative on Kiwibank's issuer default defaults, which was in place since April 2016, Fitch said.

The one-notch downgrade follows the removal of the guarantee from New Zealand Post, which reduces its legal and binding commitment to support the bank, the agency said.

The recent removal of the guarantee is the final stage of the transaction, which resulted in a change of shareholders of Kiwi Group Holdings Ltd., the parent of Kiwibank, Fitch said.

The stable outlook reflects the view that no other rating actions are expected following the completion of the transaction, the agency said.

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