Standard & Poor’s lowers New Zealand Post credit rating

30 October 2012

Standard & Poor’s Ratings services has advised New Zealand Post Limited that its long term/short term issuer credit ratings have been lowered from ‘AA-/A-1+’ to ‘A+/A-1’, with the outlook amended from negative to stable.

Standard & Poor’s advised the downgrade reflects the continued erosion of New Zealand Post’s traditional standard letter delivery business in comparison to the growing banking operations, and shifting focus to parcel and express courier services, and financial services.

New Zealand Post Chief Executive Brian Roche said while the rating change reflects the need for fundamental change in the letter mail business, the company was well advanced in putting the strategies in place to deal with these challenges.

“New Zealand Post has developed and is evolving the plans to achieve a sustainable physical network as well as continuing with the strategies of growing the bank and creating a digital future,” Mr Roche said.