Auckland

Approximately 82,000 Kiwi firms downgraded

Approximately 82,000 Kiwi firms downgraded

Approximately 82,000 New Zealand firms have had their credit risk or payment profile downgraded since January 2008, as they clearly saw the signs of stress in the recessionary economy.

It was confirmed by Credit reporting agency Dun & Bradstreet, which released the data today that this has come as the largest number of downgrades ever, over a 15 month period.

Provisions do not hinder payments, says Dorchester

Provisions do not hinder payments, says Dorchester

It has been forwarded by Dorchester Pacific executive director Paul Byrnes that even though after adding more than $8 million to the company’s provisions for loan losses in the past six months, the company still hopes to meet its obligations to Dorchester Finance investors.

Already the company has got the next couple of payments hoarded away. It should be noted though that whether the provisions will affect repayments over the next year or two will come down to what happens when the loans are actually realized.

5.7 per cent fall in Air NZ passengers

5.7 per cent fall in Air NZ passengers

Some 5.7% fewer passengers were carried by Air New Zealand last month than it did in April last year when the holiday season fell in March. The drop in number of passesngers happened even when an Easter boost has been counted.

However after cutting its capacity by 12.7%, the airline’s passenger load factor was increased by 4.5%     points. In the month of April Air New Zealand carried 971,000 passengers.

Biggest fall in food prices since April 2006

Biggest fall in food prices since April 2006

Statistics New Zealand latest report says that the food prices dropped down 0.6% with a sharp drop in kiwifruit prices almost by 55%.

In spite of the drop in April the food prices increased by 7.6% for the year to April 2009.

In the month of April fruit and vegetable dropped by 2%, grocery food fell by 0.4%, meat, poultry and fish decreased by 0.8%.

Non-alcoholic drinks dropped by approximately 1% during the month.

Restaurant meals and ready-to eat food increased by 0.4% and was the only subgroup to increase.

$324m sought by Pacific Brands from rights offer

$324m sought by Pacific Brands from rights offer

Pacific Brands, the maker of iconic brands such as Berlei, Bonds and King Gee is seeking $324m from rights offer. It was confirmed by the company that while the institutional $154 million part of the deal is fully underwritten, the retail $102 million part is pending.

It has been learnt that the proceeds would be utilized to decrease debt and for working capital as the apparel company restructures its operations by reducing the number of its brands, realigning costs and exiting the majority of clothing manufacturing sites.

Regional review carried out by Air NZ

Regional review carried out by Air NZ

Amidst downturn in demand, regional network service is being reviewed by National carrier Air New Zealand.

According to The Dominion Post, the airlines told that the number of passengers for its haul flights has decreased by 3% and is impacting its margins.

The improvement is being considered by the airlines in the way regional airline subsidiaries Eagle Air, Air Nelson and Mount Cook Airline function.

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