Fitch Assigns 'F1+' Rating to NZ LGFA's Domestic Short-Term Debt Programme
The LGFA's Short-Term Local-Currency Issuer Default Rating (IDR) is currently 'F1+' and was last affirmed on 18 November 2014. The LGFA is able to issue short-term securities (LGFA Bills) under its existing documentation, which includes the LGFA's investment statement dated 17 August 2015 (or any replacement investment statement), a master trust deed between LGFA and Trustees Executors Limited dated 7 December 2011 (as amended on 8 February 2012), and a supplemental trust deed (no.2) dated 15 February 2012.
The Bills will be issued on a discount to par non interest basis, with the principle amount paid on maturity. The Bills are repo eligible with the Reserve Bank of New Zealand and over the next 12 months the LGFA plans to issue NZD50m on a monthly basis with issuance split equally between three and six month maturities.
KEY RATING DRIVERS - SHORT-TERM LOCAL-CURRENCY DEBT
The Short-Term Local-Currency Rating for the LGFA's domestic debt programme is equalised with the entity's Short-Term Local Currency IDR (currently 'F1+') in accordance with Fitch's rating criteria.
RATING SENSITIVITIES - SHORT-TERM LOCAL-CURRENCY DEBT
The Short-Term Local-Currency rating on LGFA's domestic debt programme is sensitive to any change in the IDRs of the entity. For details on the Key Rating Drivers and Rating Sensitivities for the IDRs of the LGFA, see the rating action commentary titled, "Fitch Affirms New Zealand's LGFA at 'AA+'; Outlook Positive", dated 18 November 2014, which is available at www.fitchratings.com.