HGH - Heartland Group Holdings

[Snoopy]

Mr market was slow to react so I added this morning at 87 cents ....didn't see any point waiting for the inevitable breakout. Very encouraging to see the S&P upgrade. I'm not sure but did someone mention we are well positioned

BBB- stable to BBB negative outlook? You really think that will make a big difference?

SNOOPY

[Bjauck]

The differential between ANZ term deposit interest rates and Heartland Term deposit interest rates has reduced over the last few months. So yes, I think improving credit ratings will increase Heartland profitability and hence attractiveness to investors.

Disclaimer: Shareholder in ANZ and HNZ.

[Arbitrage]

Do any of our members with a banking background know what a difference the credit rating changes make to the cost of borrowing by the bank?

[Harvey Specter]

BBB- stable to BBB negative outlook? You really think that will make a big difference?

SNOOPY

I think the BBB- also negative outlook as the negative outlook is industry/economy specific in this case, not company specific.

It is a step closer to BBB+, and then we are into the A's - of course it is positive. They would have just lowered their cost of funds with no corresponding decrease in what they loan out at.

[percy]

BBB- stable to BBB negative outlook? You really think that will make a big difference?

SNOOPY

Yes

It will make a BIG difference;
Lower cost of borrowing.
Means "the market" will appreciate the big progress Heartland are making.
I think brokers will be happy to recommend Heartland as they have more runs on the board.
Add to Heartland's record of achieving what they said they would do.
Good progress made in selling "legacy" property,and proceeds reinvested in good loans.
Added strength of loan book recognised.
As a investor the rerating adds to my peace of mind.

[Beagle]

Snoopy - I agree with all of the above posters and can only add that its also about market perception.
I think people want to be dealing with a New Zealand bank that's growing stronger. Fundamentally the stock is very sound value at these level's and trading on a very undemanding 2015 PE ratio and attractive dividend yeild with ongoing growth prospects.

[percy]

Well I rang Jeff Greenslade to congratulate him on the raised S&P Credit Rating.
Luckily Jeff was in a meeting,so I had the pleasure of speaking to Allison.
She was very pleased to hear from me, and will pass my comments onto Jeff Greenslade and The Chairman.

[winner69]

Well I rang Jeff Greenslade to congratulate him on the raised S&P Credit Rating.
Luckily Jeff was in a meeting,so I had the pleasure of speaking to Allison.
She was very pleased to hear from me, and will pass my comments onto Jeff Greenslade and The Chairman.

Is Alison the tea lady or some real manager

well done anyway Percy

[percy]

Is Alison the tea lady or some real manager

well done anyway Percy

Whatever she does she answered Jeff's DDI phone.
The easy way she spoke to me I suspect she is not The Tea Lady,but a very capable person, who could indeed make a lovely cup of tea,as well as keeping the CEO's office running like clockwork.!

[forest]

Whatever she does she answered Jeff's DDI phone.
The easy way she spoke to me I suspect she is not The Tea Lady,but a very capable person, who could indeed make a lovely cup of tea,as well as keeping the CEO's office running like clockwork.!

Allison Windley
Executive Assistant at Heartland Bank
Auckland, New Zealand Financial Services
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