Trading in the securities of South Canterbury Finance has been halted on the stock exchange.
The South Island-based lender says it will make a material statement soon.
Last week, Standard and Poor's cut the finance firm's long term credit rating from B- to CC, and warned further downgrades can not be ruled out.
South Canterbury Finance has said it is in talks with parties interested in taking a stake in the company to bolster its financial strength.
It hopes the talks will lead to something more solid by the end of August.
