Bell Block’s TSB Bank is one of eight New Zealand banks to have their status downgraded by international ratings agency Standard & Poor’s. The banks’ outlook was revised on Friday May 17th 2013 from stable to negative, citing rising economic risks. The eight banks were TSB Bank, Co-operative Bank, Heartland Bank, Credit Union Baywide, Credit Union South, First Credit Union, New Zealand Association of Credit Unions, and Police and Families Credit Union. A negative outlook means the banks’ credit ratings may be lowered six to 24 months in the future. The ratings agency meanwhile confirmed its assessment on ANZ, ASB, Bank of New Zealand, Westpac, Bank of India, Rabobank, and Kiwibank, whose ratings and outlook remain unchanged, reflecting support from their parents. The heightened risk assessment comes a day after Finance Minister Bill English’s fifth Budget, which included giving the Reserve Bank the power to slap controls on bank lending to help dampen the housing market.
