New Zealand Post's Standard & Poor's credit rating has not been affected by the state-owned entity's cash injection into its Kiwibank subsidiary.
S&P global ratings said yesterday NZ Post maintained its A+/Stable/A-1 rating.
Kiwibank's shareholders - NZ Post, the Government Superannuation Fund and ACC - believed the $247million equity placement would help to maintain market confidence in the company.
NZ Post would contribute $131million, proportionate to its 53% shareholding of the bank.
The Reserve Bank decided Kiwibank's convertible capital instruments no longer complied with its capital adequacy rules. The equity injection would maintain existing capital ratios should the Reserve Bank's preliminary decision be upheld, S&P said in a statement.
''We expect NZ Post to have cash holdings of about $270million following its equity injection to the bank. The size of NZ Post's cash holding could reduce if it were to make its final special dividend to the New Zealand Government of up to $100million, linked to its partial sale of Kiwibank to the Super Fund and ACC.''
However, S&P did not expect the payment to be made before NZ Post's capital structure review due later this year.
The review was likely to consider subsequent events, such as if the Reserve Bank was to overturn its preliminary decision or if Kiwibank was to issue new convertible capital instruments.
The rating agency would review NZ Post's financial risk profile following the capital structure review.
''We continue to expect NZ Post would benefit from a very high likelihood of extraordinary support from the New Zealand Government in times of stress.''
