Regulatory Alerts2022-02-27
Standards and requirements for banks: Information on credit ratings
The New Zealand Prudential Supervisor mandates that registered banks obtain and maintain a current credit rating from Standard & Poor's, Moody's, or Fitch Ratings under section 80 of the Banking (Prudential Supervision) Act 1989. Banks are required to publish these ratings in their six-monthly disclosure statements to demonstrate their financial strength and creditworthiness. The document clarifies that ratings provide a medium-term view of default risk but should not be relied upon solely for investment decisions or as guarantees of future safety.
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