PHOTO: SEAN SHADBOLT SUPPLIED FE Investments has lent money on two Auckland hotel developments.
A finance company with $64 million in term deposit investments from mum and dad investors may have to write down the value of major loans, and is in a “vulnerable” position.
FE Investments survived the global financial crisis, which saw the demise of many finance companies including Hanover, Bridgecorp and South Canterbury Finance, but international ratings agency Standard & Poor’s downgraded the company’s credit rating to CCC on Friday.
An CCC rating meant FE Investments was “currently vulnerable to nonpayment and is dependent upon favourable business, financial, and economic conditions for the obligor to meet its financial commitments on the obligation.”
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