New Zealand Post says it might have to look for alternative methods of funding if the Government won't put up money to go towards the introduction of new Reserve Bank regulation.
Last month New Zealand Post and its banking subsidiary, Kiwibank, had their credit ratings cut by one notch to A+ with a stable outlook.
New Zealand Post has asked the Government for money to help Kiwibank meet the capital adequacy requirements as part of new regulation being imposed by the Reserve Bank.
The bank could provide the capital itself but it wants that money for expanding its operations.
New Zealand Post chairman Sir Michael Cullen said the downgrade has some impact on the bank's growth potential.
And he said getting money for the changes is an extended process. The company realises it's a 'big ask' for the Government to provide funding when it's so financially constrained.
"Our position is that if the Government's unable to provide that then we want to discuss with them what is on the table for us finding capital elsewhere, we know that things like selling off part of the business or part of Kiwibank is off the table, but are there other forms of money raising that might be possible," he said.
Sir Michael said the company is also in the process of looking at changing New Zealand Post's Deed with the Government to get more flexibility to make operational changes if required in the future.
