Fitch Ratings has revised its outlook on New Zealand Association of Credit Unions (trading as Co-op Money NZ) to Negative from Stable and affirmed its Long- and Short-Term Issuer Default Ratings at 'BB+' and 'B', respectively. "Co-op Money NZ's rating is driven by its modest franchise and small customer base, which has shrunk over the previous year due to the withdrawal of business from two members, one of which was the largest. The association also has a less diverse and more specialised business model than industry peers," Fitch noted. The ratings agency expects profitability to remain flat over the next few years, despite potential revenue growth from external business, due to high level of ongoing investment, legal and restructuring costs.
The payments options being offered to bank customers keep building, with the announcement from ANZ that it has signed a partnership with the global wearable devices brand Garmin Pay. From today, ANZ's Australian customers can load their eligible Visa debit or credit cards through a Garmin vÃvoactive 3 'smartwatch' app, paired with an Apple or Android smartphone. Once set up, customers can use their Garmin device to make purchases anywhere contactless payments are accepted. Caught between a crackdown by regulators and the temptations of a continuing low-interest rate environment, it appears Australians are increasingly wary of interest-only home loans. Gateway Credit Union's 2017 Mortgage Holders Sentiment Report suggests almost half (46 per cent) of Australians polled in this year's survey were "Adamant Decliners" of interest-only home loans due to the perception that these arrangements increase debt. This is a rise of five per cent on Gateway's 2015 survey result. A further 25 per cent of respondents were "Resistant Approvers", acknowledging the benefits of interest-only loans yet choosing not to utilise them. Less than one in five (18 per cent) described themselves as "Enthusiastic Users", indicating they have used an interest-only home loan to increase cash flow. The numbers have declined by four per cent compared to the 2015 result. Gateway CEO Paul Thomas says the results suggest borrowers are becoming more astute when it comes to mortgages. The housing market view from Adelaide seems bright and sunny, with the September quarter 2017 edition of the Adelaide Bank/Real Estate Institute of Australia Housing Affordability Report shows an improvement in housing affordability nationally. The bank said the proportion of median family income required to meet average loan repayments decreased by 1.2 percentage points to 30.3 per cent, a decrease of 0.6 percentage points compared to the same quarter in 2016 - although housing affordability "is still a major issue" in Sydney and Melbourne. The number of first home buyers increased by 22.8 per cent per cent during the quarter, or 32.6 per cent year on year.