Business Services Industry

AUSTRALIA: MOODY'S EXPLAINS RATING APPROACH TO AUSTRALIAN & NEW ZEALAND FINANCE COMPANIES.

IPR Strategic Business Information Database, October, 2007

A new report from Moody's Investors Service explains in detail the rating agency's approach to rating Australian and New Zealand finance companies. "New regulations are being put in place to improve finance company standards after a string of failures in both Australia and New Zealand," says Marina Ip, a Moody's Analyst and author of the report.

"The report offers an overview of the finance company sectors in Australia and New Zealand, and explains in detail how Moody's assesses the ability of a finance company to repay its debts". Four high-profile property investment companies have collapsed in Australia and ten finance companies have failed in New Zealand since 2006. Members of the public that have invested in debentures or deposits issued by these...

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