Standard & Poor’s has confirmed Kiwibank’s credit rating at AA- but downgraded its outlook from ‘stable’ to ‘negative’ after the rating of its owner, New Zealand Post, was reviewed.
According to Kiwibank chief executive Paul Brock, the amendment to New Zealand Post's outlook was automatically passed on to the bank.
Standard & Poor’s said the negative outlook for New Zealand Post reflected the ongoing decline in its traditional mail business, in line with postal trends globally.
Earlier this month Kiwibank announced it was buying Gareth Morgan Investments for an undisclosed price in order to grow its wealth and KiwiSaver businesses.
Meanwhile, New Zealand Post-owned Localist is undergoing a restructuring with a number of sales and management positions being disestablished.