Regulation and supervision Banks Key prudential requirements Credit ratings of banks in New Zealand

Credit ratings of banks in New Zealand

All New Zealand-registered banks must obtain and maintain a credit rating applicable to their long-term senior unsecured obligations payable in New Zealand, in New Zealand dollars.
 Last updated: 30 April 2018

Under section 80 of the Reserve Bank of New Zealand Act 1989, the Reserve Bank requires registered banks to obtain and maintain a current credit rating applicable to their long-term senior unsecured obligations payable in New Zealand, in New Zealand dollars. Registered banks must publish their credit rating in quarterly disclosure statements.

A credit rating is an independent opinion on the capability and willingness of a financial institution to repay its debts. It provides a simple summary measure of relative risk that is relatively easy to understand. The availability of a rating allows depositors, and other creditors, to assess the relative riskiness of individual banks and to make informed investment decisions. A credit rating requirement is also likely to enhance incentives for banks to operate their business prudently in order to avoid a rating downgrade.

See Explaining Credit Ratings (PDF 71KB) for an explanation of how credit ratings work, and what they can and cannot do.

Registered banks' credit ratings

The ratings in the table below are obtained from banks' quarterly disclosure statements and credit rating agency reports.

The Reserve Bank has made reasonable efforts to ensure that a rating recorded on this page is the most up-to-date rating applicable to the bank concerned. However, the Reserve Bank cannot guarantee that a rating will be the most up-to-date in all circumstances.

Total number of registered banks: 26

Name of registered bank

Name of credit rating agency

and rating

Standard & Poor's

Fitch

Moody's

ANZ Bank New Zealand Limited

AA-

AA-

A1

ASB Bank Limited

AA-

AA-

A1

Australia and New Zealand Banking Group Limited (B)

AA-

AA-

Aa3

Bank of Baroda (New Zealand) Limited

-

BBB-

-

Bank of China Limited (B)

A

A

A1

Bank of China (New Zealand) Limited

A

-

A1

Bank of India (New Zealand) Limited

 BB+

-

-

Bank of New Zealand

AA-

AA-

A1

China Construction Bank Corporation (B)

A

A

A1

China Construction Bank (New Zealand) Limited

A

-

A1

Citibank N A (B)

A+

A+

A1

Commonwealth Bank of Australia (B)

AA-

AA-

Aa3

Heartland Bank Limited

-

BBB

-

Industrial and Commercial Bank of China (New Zealand) Limited

A

-

A1

JPMorgan Chase Bank NA (B)

A+

AA-

Aa3

Kiwibank Limited

A

AA

A1

Kookmin Bank (B)

A+

A

A1

Coöperatieve Rabobank U.A. trading as Rabobank Nederland (B)

A+

AA-

Aa3

Rabobank New Zealand Limited

A

-

-

Southland Building Society

-

BBB

-

MUFG Bank, Ltd.

A

A

A1

The Co-operative Bank Limited

-

BBB

-

The Hongkong and Shanghai Banking Corporation Limited (B)

AA-

AA-

Aa3

TSB Bank Limited

-

A-

-

Westpac Banking Corporation (B)

AA-

AA-

Aa3

Westpac New Zealand Limited

AA-

AA-

A1

Related to this page

Generic Page Thumbnail Register of registered banks in New Zealand
Generic Page Thumbnail List of registered banks in New Zealand - past and present
Banks news & updates

Jun 2018 Banks

On 6 June 2018, the Reserve Bank updated the Banking Supervision Handbook.

Go to the Banking Supervision Handbook page

Apr 2018 Banks

On 11 April 2018, the Reserve Bank published a consultation document on its approach to allowing overseas banks to use restricted words (such as “bank” and “banking”) in New Zealand without being registered here as a bank.

Go to the Authorisations for the use of restricted words by overseas banks consultation page

Mar 2018 Banks

On 29 March 2018, the Reserve Bank published updated versions of its working copies of the disclosure Orders in Council, to incorporate the changes that take effect from 31 March. A number of other web page changes were made at the same time, to reflect the fact that off-quarter disclosure statements are no longer required.

Go to the Banking Supervision Handbook page

Feb 2018 Banks

On 23 February 2018, following the gazetting of disclosure changes to complement the new Dashboard approach to quarterly disclosure, the Reserve Bank published a feedback statement on the consultation on the changes, and a regulatory impact statement for the combined effect of the Dashboard and the disclosure changes.

View the Dashboard approach to quarterly disclosure consultation page

Dec 2017 Banks

On 11 December 2017 the Reserve Bank published guidance for the preparation of a separation plan. The purpose of this document is to provide banks with guidance on how they should prepare their separation plan, as required under the revised Outsourcing Policy.

Read the guidance for the preparation of a separation plan (PDF 267KB)

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Contact details

Banking system information
Prudential Supervision Department
Reserve Bank of New Zealand
PO Box 2498
Wellington 6140

 +64 4 472 3262
 rbnz-info@rbnz.govt.nz

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