I think the credit rating agencies are very risk adverse, following their "asleep that the wheel" behaviour from about 2006 to 2009. Only when the depth of the financial crisis was apparent did they tighten up standards.

Having said this, I welcome an accurate assessment of the risks. NZF Money, one of the divisions of the NZF Group probably warrants the CCC- rating.

The purpose of finding the financial partner is to wean NZF Money off retail debenture funding. The purpose of downsizing the NZF Money loan book is to wean NZF Money off retail debenture funding. The purpose of disposing of Finance Direct was to take pressure off the NZF Money dependence on retail debenture funding. I sense a pattern developing ....

If NZF were in denial of the problem, I would be deeply concerned. They are clearly addressing the matter and apparently have a number of "irons in the fire".

The delays to announcing the new partner amounts to bad news, in strategic terms. They keep saying that there are two parties still involved ... this has got to buy some confidence that a deal will happen.

If they have to tap the shareholders for extra equity ... this is probably the "last resort", but it remains as a viable option.