8 Jul 2009

South Canterbury Finance placed on credit watch

3:04 pm on 8 July 2009

South Canterbury Finance has been placed on negative credit watch.

Rating agency Standard & Poor's says the action follows an announcement by the finance company that it lost $37 million in the 2009 year because of a writedown of $58 million.

A credit-watch negative listing implies a one-in-two chance of a rating downgrade in the next three months.

South Canterbury Finance founder Allan Hubbard has injected $40 million in new capital for the company and pledged more if required.