Lion Nathan equalised and more on NZ finance companies 26 October 2009 5:17PM Philip Bayley Lion Nathan has had its long-term credit rating from Moody's equalised with that assigned to its parent, Kirin Holdings Company Limited, at 'A2' with a stable outlook. This completes the review commenced by Moody's when Kirin moved to make a full takeover of Lion in April.Moody's said Lion Nathan's stand alone credit profile remains consistent with a 'Baa2' rating but the new rating reflects the full ownership and strong implicit support of the parent, backed by its own stronger credit profile.S&P assigned new 'BBB-/Stable/A-3' credit ratings to another New Zealand finance company, Oxford Finance Corp. Ltd. Oxford Finance Corp., is a mid-sized finance company operating in the southwest of the North Island and specialises in motor vehicle and property loans. S&P said the ratings on Oxford Finance Corp., reflect the implicit and explicit support that it receives as part of the Electra Group (Electra), a trust-owned electricity network business. The credit strength of the group stems from Electra's natural monopoly position, benign regulatory framework, good operating performance, and stable service area. These factors are offset by the group's expansion and acquisition appetite and the higher risk profile of its subsidiary.The new ratings were announced as another struggling New Zealand finance company, South Canterbury Finance, finally registered a new prospectus which will allow it to start accepting money from investors again. The prospectus reveals that South Canterbury will borrow up to NZ$75 million from an unidentified third party, which will be used to help repay the US$100 million owed to US lenders over the next six months. The new lender will take a charge over the assets of the finance company.In addition, the prospectus disclosed that Chairman, Allan Hubbard, will step down within 12 months and that South Canterbury's stakes in Dairy Holdings and South Island Farm Holdings will be divested. These developments should help address some of the concerns expressed by S&P, when they placed the 'BB-' credit rating assigned to the finance company on CreditWatch with negative implications, in late September. South Canterbury has NZ$475 million of bonds on issue in New Zealand, with maturities ranging from January 2010 to December 2012.