South Canterbury noteholders may demand repayment following downgrade

By Lisa Kerner

Charlotte, N.C., Sept. 16 - South Canterbury Finance Ltd. said it is in discussions with five subscribers of its $100 million private placement of notes regarding repayment following the resetting of the company's credit rating to BB+ from BBB- by Standard & Poor's on Aug. 13.

The investors are entitled to require repayment three months following the downgrade, according to a South Canterbury news release.

The company said its short-term rating was also lowered to B from A-3 and its ratings were removed from CreditWatch with negative implications.

South Canterbury, a Timaru, New Zealand-based finance company, said its rating outlook is negative and another rating downgrade is possible.

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