Strategic Finance's rating confirmed
Strategic Finance has received a further B1 credit rating by international corporate ratings agency Rapid Ratings.
Tuesday, December 7th 2004, 6:18AM
A B1 credit rating indicates that the company is operating at between 75 – 80% of its potential.
With respect to the risk of non-payment of corporate debts and/or the degree of risk of insolvency, the company is a moderate to low risk and somewhat subject to fluctuations in market conditions.
A Credit Rating of B1 also suggests that the business of Strategic Finance is very good quality and that the company is investment grade.
This is the third rating of Strategic Finance by Rapid Ratings. The rating remains in place until November 2005 unless there is a material change in the company.
In addition, Rapid Ratings has assigned a B1 credit rating to the debenture stock issued by Strategic Finance . 2004 was a year of strong financial performance by Strategic Finance.
Revenue growth has averaged 50% annually over the past three years, resulting in sustained asset and profitability growth. Strategic Finance has sound processes and policies to manage its loan book, which are being regularly reviewed and updated.
The portfolio is of sound quality but is of short duration, with high levels of concentration in second mortgage lending, predominately in the Auckland region.
Strategic Finance has eliminated all related party lending. Taking into account the size of the company, it has very high governance standards. These standards include very good levels of accountability, transparency and performance measurement.
The company has a strong board with broad experience and a senior management team with significant industry experience.
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