Angas rating downgraded for second time

Standard & Poor's lowered its long-term issuer credit rating on debenture issuer Angas Securities to B- from B on Friday, and lowered its short-term issuer credit rating to C from B. It is the second downgrade from S&P this year for Angas.

The Adelaide-based firm continues to manage a "persistent high level of arrears in its concentrated loan portfolio," S&P said.

The ratings agency also noted Angas's "high sensitivity to potential credit losses in the context of its small absolute capital base and modest capital ratios."

Angas had arrears of A$75 million at May 2013, out of $330 million in assets.

S&P said Angas "expects to resolve several of its large non-performing loans by June 2013", and reduce arrears to $48 million by the end of this month. Angas has also said it has "experienced ongoing delay in the resolution of such loans in the past."

Earlier this year, the Australian Securities and Investments Commission asked Angas to cease taking debentures from new investors.

S&P said the independent business review required by ASIC was completed by an independent advisor provided to Angas by the trustee in April.