The finance arm of Pyne Gould Corporation has received good news from Standard & Poors.
The credit rating agency has upgraded Marac's future prospects, from negative to stable, while its credit rating remains at Double B plus.
It says Marac's financial position has improved because of an injection of capital and removal of bad loans into another company.
Standard & Poors expects that funds set aside for bad loans by Marac should decline.
And it says Marac should retain the confidence of its banks and investors, once the government's retail deposit guarantee runs out in December next year.
Marac is currently in talks with Canterbury Building Society and Southern Cross Building Society to form a bank worth $2.2 billion.