NZF Money has had its credit rating downgraded again, after the troubled lender withdrew its prospectus following an investigation by the Financial Markets Authority.
Standard & Poors cut its rating from CCC minus to CC and says another downgrade is on the cards unless NZF Money is able to inject new money next week to avoid defaulting on its debt obligations.
The FMA says an inspection of NZF Money's documents revealed concerns about the company's disclosures of the quality of its assets and its liquidity.
The company's parent, NZF Group, says it pulled the prospectus after being told by a borrower that an expected $3.5 million sale deal had stalled.
The FMA says its investigation is continuing and it will take further action if it needs to.