Avanti gets good report card

Ratings agency S&P recently confirmed Avanti’s BB credit rating, reflecting the company's “very strong capitalisation levels and sound and defendable business model, underpinned by a well-articulated and executed strategy.”

“Avanti's business model is transitioning toward a higher proportion of residential mortgage loans within its business mix--a business line that we consider highly commoditised and competitive.”

S&P says there is “a lack of meaningful competition in the non-bank sector within Avanti's chosen target market and adopted points of distribution – third party distribution.”

It says Avanti has a long-standing and successful history with brokers which augurs well the company.