Public Trust's Credit Rating
Public Trust's creditworthiness is rated by a ratings agency approved by the Reserve Bank of New Zealand under section 157J of the Reserve Bank of New Zealand Act 1989. The approved ratings agency is Moody's Investors Service. The current long term issuer credit rating of Public Trust is Aa3 with outlook stable.
This is a local currency (New Zealand dollar), long-term issuer rating. Long-Term issuer ratings are opinions of the ability of entities to honour long-term senior unsecured financial obligations and contracts.
An Aa3 issuer credit rating is considered high grade and the strength of the issuer's capacity to make timely payment is considered to be very strong.
Moody's overall rating scale goes from Aaa to C (with Aaa being the highest rating).
Moody's standardised rating scale:
Credit ratings are statements of opinion issued by Moody's Investors Service and are not statements of fact, an endorsement of Public Trust, or a recommendation to buy, hold or sell securities.
Public Trust's Rating History
| Date | Moody's Rating Credit | Deposit |
Outlook | Action | |
|---|---|---|---|---|
| 31 August 2011 | Aa3 | Aaa | Stable | Reaffirmed |
| 31 August 2010 | Aa3 | Aaa | Stable | Issued |
Public Trust Deposit Rating
Moody's have also assigned a backed long-term deposit rating of Aaa with a stable outlook to Public Trust.
The rating covers deposits in the Common Fund, which are guaranteed by the New Zealand Government under the Public Trust Act 2001.
Interest on these deposits is guaranteed under the Public Finance Act 1989.
Neither guarantee is limited by time, quantum of investment or class of investor.
A deposit rating is an opinion of an entity's ability to replay punctually its deposit obligations.
Public Trust exemption from requirements of Reserve Bank of New Zealand Act 1989
The Reserve Bank of New Zealand Act 1989 (Act) requires non-bank deposit takers such as Public Trust to maintain minimum capital requirements, restrictions on related party exposures, and liquidity requirements from 1 December 2010.
Under the Deposit Takers (Public Trust) Exemption Notice (No 2) 2010, the Reserve Bank has granted Public Trust a conditional exemption from the following requirements of the Act:
- the capital ratio requirements in sections 157T and 157U
- the related party exposures requirements in sections 157X and 157Y
- the liquidity requirements in sections 157ZA and 157ZB.
A copy of the exemption notice, including the conditions imposed on Public Trust and the reasons for granting it, is available at www.rbnz.govt.nz