S&P lowers Kiwibank

S&P said it lowered the long-term issuer credit rating on Kiwibank Ltd. to A from A+.

The agency also said it affirmed the bank’s short-term issuer credit rating of A-1.

The ratings were removed from CreditWatch, where they were placed with negative implications in April 2016, S&P said.

The outlook is stable.

S&P also said it affirmed the A+ rating on the outstanding long-term debt issued by Kiwibank during the guarantee period.

The agency also said it affirmed the BB+ rating on Kiwibank's non-deferrable subordinated debt and the BB+ rating on its non-deferrable subordinated debt.

The BB- rating on the perpetual capital notes issued by the bank's affiliate company, Kiwi Capital Funding Ltd. are unchanged.

S&P said it lowered the long-term issuer credit rating on Kiwibank due to the recent expiry of the unconditional guarantee from the bank's majority owner, New Zealand Post Ltd.

The ratings were previously equalized with the New Zealand Post, reflecting the guarantee, which covered all obligations of Kiwibank, the agency explained.

The removal of the guarantee has no effect on Kiwibank's stand-alone credit profile of BBB, S&P noted.

Kiwibank's stand-alone rating continues to reflect Kiwibank's nationwide presence as a meaningful competitor in the New Zealand banking landscape, the agency said, and its strong capital position.

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