News Round Up

Strategic Finance is the first non-bank finance company to get a public rating from Rapid Ratings.

The company has been given a B1 credit rating for the next 12 months which is the equivalent of an A- rating from Standard and Poor's.

A B1 rating means that the company is operating at between 75% and 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," Rapid Ratings says.

It says Strategic Finance is an investment grade company.

The rating is based on a combination of quantitative rating of Strategic's financials and a qualitative credit assessment process.

Bridgecorp goes to market
Bridgecorp Holdings is going to the market for $20 million worth of capital notes.

The two-year tranche will pay interest of 11.5%, while a three-year tranche will pay 12%.

The company has raised about $23 million in capital note offers since 2000.

"The additional capital raised by the issue will enable Bridgecorp to continue to grow its finance book particularly in New Zealand," the company says in a statement.

Bridgecorp says it continues to experience significant demand for loan monies and does not see this trend diminishing.

Managing director Rod Petricevic says Bridgecorp has moved away from property investment as part of its core business and focused instead on mortgage lending, and had now become a significant player in the New Zealand finance market.

Numeria follows
Numeria Finance Ltd, a new company aimed at expanding the financing options for New Zealand merchants, has launched an issue of debenture stock.

The company is headed by Kelly Wright and is chaired by David Wolfenden, the former managing director of Countrywide Bank.

Numeria Finance specialises in providing finance to a number of market niches, in areas such as motoring, retail factoring, investment loans, personal loans and the leasing market.

Numeria Finance is seeking to raise up to $100 million in secured debenture stock at a range of attractive rates depending on the term of the investment. Also it is offering a maximum of $25 million in unsecured on call deposits.

Numeria Corporation Ltd owns Numeria Finance Ltd, and the ultimate shareholder is former Advantage ceo Evan Christian.