Bridgecorp declared investment grade
Bridgecorp has secured a B3 investment grade rating from rating agency Rapid Ratings.
Friday, November 18th 2005, 6:33AM
Rapid Ratings says that Bridgecorp has shown itself to be a very experienced lender in the property development sector of the market.
“Although operating at the riskier end of the market, in the past three years Bridgecorp has developed very sound credit approval and management systems.
“In the past year the company has reduced non-performing loans and loan write-offs significantly. Internal governance standards have been raised and the company is engaged internally in a process of continuous improvement, Rapid Ratings says.
Bridgecorp scores a big plus from Rapid Ratings by having Lloyds of London covering 78% of its loan book.
The rater says a B3 rating suggests that the business of Bridgecorp is of “reasonably good quality and that, with respect to the risk of non-payment of corporate debts and/ or the degree of risk of insolvency, the company is a moderate risk and more subject to fluctuations in market conditions.”
Rapid Ratings says Bridgecorp has achieved very good financial results in the past year, improving its overall performance.
“It has a good record of profitability and is performing at a high level of financial efficiency. Although the company achieved modest growth in the past year “Its focus has been on improving financial results which are now more in line with those of its major competitors. “
The financial performance of Bridgecorp needs to be viewed against the strong performance of other finance companies, particularly those in the same property financing business, the report says.
“New Zealand market conditions have been very favourable for finance company growth for several years but there is some evidence of a stalling of growth in the current year which reflects a general slowing of the economy and a correction from the strong economic growth of recent years.“
This is the third time Bridgecorp has been rated in the previous two it scored sub-investment grade scores.
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