Fisher & Paykel Finance Strength Allows Exit Govt Guarantee

Strength Of Fisher & Paykel Finance Allows It To
Exit Government Guarantee Scheme Early

Fisher & Paykel Finance Limited announced today it would cease offering guaranteed securities under the Crown’s Retail Deposit Guarantee Scheme, effective immediately.

The Company’s managing director Alastair Macfarlane said the strength of Fisher & Paykel Finance Limited has allowed it to exit the scheme six months early.

“The Crown’s guarantee served its purpose through the global financial crisis and it is now appropriate for Fisher & Paykel Finance Limited to only offer non-guaranteed term debentures to the public.

“Our consistent strong financial performance and positive liquidity position has given us the confidence to make this change ahead of the expiry of the Crown’s guarantee scheme on 31 December 2011,” he said.

Macfarlane said investors with existing guaranteed debentures would continue to have the benefit of the Crown deposit guarantee in accordance with its terms.

Fisher & Paykel Finance Group, recently reported a strong earnings performance for the year ended 31 March 2011 with earnings before interest and tax of $34.7m, a 20% uplift on the previous year’s results. Its positive liquidity position was $205 million, representing 146% of the outstanding balance of the retail debenture portfolio.

Macfarlane said the move to exit the Crown’s Retail Deposit Guarantee Scheme early would help reduce the uncertainty when managing funding requirements leading up to the expiration of the guarantee on 31 December 2011.

“Our initiative has the full support of Fisher & Paykel Finance’s banking syndicate, which includes ANZ, BNZ and Westpac.”

He said Fisher & Paykel Finance had always maintained rigorous risk management and governance practices and these established disciplines placed the business in good stead to operate under the Reserve Bank’s new regulatory reforms.

“We have a long and successful history in New Zealand – going back nearly 40 years - and attribute our success to staying focused on our core businesses of consumer and equipment lending.”

Macfarlane said Fisher & Paykel Finance Limited long-term issuer credit rating of BB Outlook Stable was reaffirmed by Standard & Poor’s in March 2011.

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