The Co-operative Bank in New Zealand may be missing short-term business targets. In a credit rating review, Standard & Poor's said the Co-op Bank "has struggled to build its member base in the past 12 months." S&P said the bank faced "further challenges in reversing this trend and progressively strengthening the business… to a level supportive of a rating upgrade." S&P lowered the outlook of Co-op Bank's rating to stable from positive. The bank has a long-term credit rating of BBB- and a short-term credit rating of A-3. This week, the bank said it had hired Bruce McLachlan as chief executive, ahead of Gareth Fleming who has been Co-operative's acting CEO since Girol Karacaoglu quit to join the Treasury in February.McLachlan is former executive with Westpac, Bank of New Zealand and National Australia Bank.Co-operative Bank gained banking registration last October, with the mutual PSIS taking on a new name and widening its strategy.The Co-operative Bank also reported its results for the year to March 2012 yesterday.Pre-tax operating profit fell 23 per cent to NZ$6.6 million. The bank said underlying profit fell marginally to NZ$7.2million.-- with Interest.co.nz