S&P gives Angas B+

Standard & Poor's said that the assigned B+ issuer credit rating on Angas Securities Ltd. reflects the company's profile as a small niche provider of commercial property and development finance, its very good credit loss record, although over a relatively short operating history, its acceptable earnings relative to risk and its exclusive focus on first-mortgage lending that has been conducted according to manageable loan-to-value criteria.

According to the agency, offsetting these strengths are Angas' weak absolute and risk-based capitalization, business concentration in the higher-risk property finance segment, a concentrated funding profile and its susceptibility to large lending exposures.

The company's size is very small in the Australian financial services sector, it had total assets of A$140.8 million and adjusted total equity of A$5.8 million on Dec. 31, the agency noted, adding that despite the higher credit risk profile and higher-than-peers nonperforming assets over the past five years, the credit loss record has been very good.

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