Our Credit Rating
PSIS's creditworthiness is rated by a ratings agency approved by the Reserve Bank of New Zealand under section 157J of the Reserve Bank of New Zealand Act 1989. The approved ratings agency is Standard & Poor’s Ratings Services (Standard & Poor's).
The current long-term credit rating of PSIS is BB+/B with a positive outlook.
A Standard & Poor's rating is an opinion of the probability of default. Based on Standard & Poor's historical default studies, a BB+/B rating indicates that over a 12-month period there is approximately a 99% probability that entities rated BB+/B will meet all their obligations in full and on time.
Standard & Poor's rating outlook assesses the potential direction of a long-term credit rating over the intermediate term (typically six months to two years). Standard & Poor's provides that an outlook of "positive" indicates that PSIS's credit rating may be raised to 'BBB-/A-3'. PSIS's credit rating has not changed in the past two years, having been held since 21 December 2007.
This is a local currency (New Zealand dollar), long-term issuer rating. This type of rating expresses an opinion about an issuer's overall financial capacity (its creditworthiness) to pay its financial obligations over a horizon that is not short-term. Standard & Poor's base this rating on an independent review and analysis of PSIS which includes a review of PSIS's ownership, management and governance structures, loan book, credit quality, level of diversification, competencies and lending procedures.
Standard & Poor's ratings range from AAA (extremely strong) to D (in default). Credit ratings are statements of opinion issued by Standard & Poor's. A credit rating is not a statement of fact, an endorsement of the rated entity, or a recommendation to buy, hold, or sell securities.
Analytic services provided by Standard & Poor's are the result of separate activities designed to preserve the independence and objectivity of ratings opinions. Ratings are based on information received by Standard & Poor's. Other divisions of the company may have information that's not available to Standard & Poor's. Standard & Poor's has established policies and procedures to maintain the confidentiality of non-public information received during the ratings process. Standard & Poor's receives compensation for its ratings. Such compensation is normally paid either by the issuers of such securities or third parties participating in marketing the securities. While Standard & Poor's reserves the right to disseminate the rating, it receives no payment for doing so, except for subscriptions to its publications.
Ratings are subject to change. Further information is available on the website of Standard & Poor's at www.standardandpoors.com
PSIS is not a registered bank, but a very co-operative co-operative.
Interest rates are subject to change. All deposits are secured by First Ranking Stock and rank equally with all existing deposits with PSIS Limited. An Investment Statement and a current registered Prospectus are available from any PSIS branch or can be downloaded here. For all lending products, PSIS Limited lending and insurance criteria, and fees apply.
