Xceda Credit Rating Upgraded to BB-
We are pleased to announce that Equifax Credit Ratings Australasia has upgraded Xceda’s credit rating from B+ to BB-, with a Stable outlook for the next 12 months. This upgrade reflects the considerable effort invested by our team behind the scenes over recent years to strengthen every aspect of our business.
Receiving an upgrade in today's economic environment is, we believe, a valuable independent recognition of the progress Xceda has made. Equifax highlighted our continued growth, healthy capitalisation, strengthened treasury management, and recent capital investment by our shareholders as key drivers of the rating improvement
See the full credit rating report here: Xceda Finance Limited_Credit Rating Report
To learn more about Xceda's deposit products or discuss which option may suit you, talk to our Deposits team on 0800 11 22 75, email help@xceda.co.nz, or visit www.xceda.co.nz.
Understanding Xceda’s BB- Credit Rating
When choosing where to place your savings, there is more to consider than simply the interest rate being offered. Understanding the financial strength and risk profile of the institution holding your money is also important.
One way depositors can assess this is through an independent credit rating.
Xceda Finance Limited has recently received an upgraded credit rating from Equifax Credit Ratings Australasia, moving from B+ to BB-, with a Stable outlook for the next 12 months. Equifax describes the BB- rating as a near-prime classification with a low to moderate level of risk.
So, what exactly does that mean?
What is a credit rating?
A credit rating is an independent opinion about an organization's creditworthiness, essentially, its capacity, viability and willingness to meet its financial obligations.
Equifax assesses businesses across a range of financial and non-financial factors and assigns a rating on a scale ranging from AAA, representing the strongest rating, through to D, representing default.
Xceda's rating is an issuer credit rating assessing Xceda Finance Limited as a financial institution.
For depositors, a credit rating provides another source of information that can be considered when comparing deposit-taking institutions and understanding their relative risk.
Why does Xceda have a credit rating?
Xceda is a licensed Non-Bank Deposit Taker (NBDT) regulated by the Reserve Bank of New Zealand.
New Zealand's regulatory framework requires licensed NBDTs, unless an exemption applies, to maintain a long-term New Zealand dollar issuer rating from an approved credit rating agency. Equifax is one of the credit rating agencies approved for this purpose.
The Reserve Bank explains that credit ratings provide a relatively simple way for the public to understand an NBDT's risk profile and compare risk across the sector.
What does BB- mean?
Equifax uses 22 different rating levels.
Within its rating framework, BB+, BB and BB- sit within the Near Prime category, which Equifax describes as having a low to moderate level of risk. The next rating below BB- is B+, which sits within the Sub Prime classification and is described as moderate risk.
Xceda's move from B+ to BB- therefore represents an improvement of one rating level and a move into Equifax's Near Prime classification.
It does not mean there is no risk. All financial institutions carry risk, and Equifax specifically notes that every rated entity has some probability of default, including entities with the strongest ratings.
A credit rating should therefore be viewed as one piece of information when considering where to deposit your money, rather than a guarantee of future performance.
What does a Stable outlook mean?
The BB- rating and the Stable outlook refer to two different things.
The BB- is Xceda's current credit rating.
The Stable outlook indicates Equifax's view of the likely direction of the rating over the coming 12 months. Equifax defines a Stable outlook as one where the rating is expected to remain unchanged.
In Xceda's assessment, Equifax noted that sustainable business growth and stabilisation of interest margins could support an improved rating in future, while deterioration in areas such as asset quality, capital or liquidity could place downward pressure on the rating.
Why was Xceda's rating upgraded?
In its latest assessment, Equifax identified several developments supporting Xceda's improved rating.
These included Xceda's continued growth in scale, strengthening of its treasury management capability, fresh shareholder capital investment and healthy capitalisation. Equifax also noted improvements in the quality of Xceda's loan portfolio.
Over the five years to March 2026, Equifax reported significant growth across Xceda's assets, lending and deposit base, while shareholder capital also increased substantially between FY2024 and FY2026.
This balance of strengths and risks is an important part of an independent credit rating assessment.