Xceda's Credit Rating increases to B+

This week Equifax Australasia Credit Ratings Pty Ltd ("Equifax") increased Xceda's credit rating from B to B+ (Stable).

This is a pleasing result for the Company, validating the efforts being made by Xceda's leadership team and staff to continue to steadily grow our business through strong governance and conservative financial management practices. 

Noting the factors contributing to the revised rating result, Equifax commented in its report: "The Company’s scale has steadily increased over the period under reviewed, evidenced by a four-year (Mar20-Mar24) compound annual growth rate (‘CAGR’) of 36.4% for a gross loan book and 47.1% for its retail funding base. Together with a healthy level of profitability maintained over the assessed period, this has supported an improvement in the Company’s overall credit profile and the credit rating upgrade." They also added: The Company remains suitably poised to grow its loan book over the near term. Most of the Company’s loans are secured by first mortgages with LVR <= 70.0%, which translate into reduced risk weighting and probability of loss on default.”

Xceda CEO Daniel McGrath also commented on the upgrade: "We are really pleased that the rating agency has acknowledged the consistency of our business, particularly since the period from the onset of Covid-19. We pride ourselves on customer service and ensuring that all our processes ranging across deposits to lending are maintained to the highest industry standards. This work has resulted in strong growth of our asset base whilst maintaining healthy positions above our required regulatory ratios." 

Equifax Australia Pty Ltd is an approved rating agency by the Reserve Bank of New Zealand. The latest credit rating report can be downloaded from our website at xceda.co.nz/term-deposit.