S&P raises Liberty’s credit rating to BBB

Standard & Poor’s have today announced an upgrade to Liberty Financial’s corporate rating.

Standard & Poor’s has raised the long-term and short-term issuer credit ratings for Liberty to 'BBB/A-2' from 'BBB-/A-3'. S&P has also revised Liberty's Stand Alone Credit Profile to 'BBB' from 'BBB-'.

The higher credit rating attributed to the mainstream specialty finance company confirms the company’s growth strategy is on track, Chief Financial Officer, Peter Riedel, said today.

“These higher ratings reflect Liberty’s success in delivering a leading diversified financial services business model with a durable capital position.

“Liberty, as the only investment grade rated non-bank in Australia, continues to deliver strong and stable financial performance as it expands its customer base in Australia and New Zealand,” Mr Riedel added.

Earlier this month Liberty announced a group profit before tax for the year ended June 30 of $74 million which was an increase of 11 per cent on the previous year. Loan originations grew by 227 per cent to $2.5 billion for the year and total assets grew by 46 per cent to $5.1 billion.

“The rating distinguishes Liberty within its industry and reflects the competitive advantages it has in accessing capital in domestic and international markets, as an independently and publicly rated organisation. We are here for the long term and our business strategy reflects that,” Mr Riedel said.

Earlier today Liberty also announced the appointment of proven senior executive and experienced director, Leona Murphy, to the Liberty board to support the continued growth of the business. Ms Murphy has more than 20 years corporate experience and has held senior executive roles for ASX Top 20 listed companies for the past 10 years.

Currently Ms Murphy is an independent director of Stone & Chalk and a member of Chief Executive Women. She has previously been a director of Australia Insurance Association, co-chair of the United Nations Environment Programmes Principles for Sustainable Insurance, and Business Advisory Council member for World Vision.

Ms Murphy’s most recent group executive role was as Chief Strategy Officer with Insurance Australia Group Limited, which included responsibility for the ongoing delivery of the IAG Group strategy, People and Culture as well as venturing and new business incubation. Prior to IAG she was an executive general manager with Promina Group and Vero Insurance.

Richard Longes, Chairman of Liberty, said: “I am delighted to welcome Leona, with her distinguished mix of business and leadership skills, to the Liberty board. Leona brings experience in related and adjacent industries, fresh perspectives and knowledge of the increasing impact of technology.

“Equally important for Liberty, is Leona’s cultural fit around our approach to free thinking, innovation and social purpose. The business continues to expand and Leona will play a key role in helping shape and guide our approach,” Mr Longes said.