Disclosure of Non-Bank Deposit Taker Credit Rating

Fisher & Paykel Finance Limited credit rating

The creditworthiness of Fisher & Paykel Finance Limited (“Fisher & Paykel Finance” or “F&PFL”) has been rated by Standard & Poor’s Ratings Service, a rating agency approved under section 157J of the Reserve Bank of New Zealand Act 1989.

The local currency (New Zealand dollar) long-term issuer credit rating assigned to Fisher & Paykel Finance on 17 February 2010 is:

                                             BB Outlook Stable

A local currency long-term issuer credit rating is a rating agency’s opinion of an obligor’s overall financial capacity (its creditworthiness) to pay its financial obligations in New Zealand dollars in the long term. Under a long-term issuer credit rating, an obligor rated 'BB' is less vulnerable in the near term than other lower-rated obligors. However, it faces major ongoing uncertainties and exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitments. See www.standardandpoors.com

The rating Outlook assigned by Standard & Poor’s assesses the potential direction of a long-term issuer credit rating over the intermediate term (typically six months to two years). A Stable Outlook means that a rating is not likely to change, and reflects Standard & Poor’s expectation that Fisher & Paykel Finance’s financial characteristics will remain stable in the medium term.

There have been no other ratings assigned to Fisher & Paykel Finance in the last two years.

Standard & Poor’s announcement

“The ratings on F&PFL reflect its exposure to the cyclical consumer segment, its reliance on continuing banker confidence and support, and our view of its parent, Fisher & Paykel Appliances Holdings Ltd. (not rated). Our view of the parent influences, but does not constrain, our view of F&PFL. These factors are offset by F&PFL’s good market position in the New Zealand consumer finance segment, its diversified customer base, and its good risk-management capabilities.

The outlook reflects our expectations that the company’s financial characteristics will remain stable in the medium term. The ratings could be raised if F&PFL were to become more independent from the parent, along with ongoing strengthening of its financial profile - building on recent efforts to reduce funding risks and increase capital. This scenario presumes the parent’s stable credit characteristics will continue. Upwards rating movement in the near term is unlikely, although may be considered in the medium-to-long term.

Negative ratings momentum would most likely hinge on ownership and funding. Should the parent’s credit standing deteriorate this would likely have negative rating consequences for F&PFL. Waning banker confidence, stress associated with lower debenture renewals, or a major operational risk event (albeit improbable) could also trouble the ratings. An incremental diminution in asset quality or profitability, however, would be less likely to result in the ratings being lowered.”

The ratings assigned to Fisher & Paykel Finance are statements of opinion issued by Standard & Poor’s Ratings Service. They are not statements of fact, an endorsement of Fisher & Paykel Finance, or a recommendation to buy, hold or sell securities.

Standard and Poor’s long-term issuer credit ratings categories

Plus (+) or minus (-)

The ratings from ‘AA’ to ‘CCC’ may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.