After South Canterbury Finance, ineffective to raise money fast enough for Standard & Poor's has now been downgraded two notches to B+. And this happened after owner of the Company Allan Hubbard quit the board after 30 years of chairmanship.

The scheme which goes through to December 31, 2011, is already been accepted by the Company and at the time it met the BB or above rating criteria for approval. Now its current rating is below that level. Chief Executive Sandy Maier said the Company has been researching investors and about two thirds are indicative of an intention to revamp deposits. The Company was pleased to be taken off CreditWatch negative. The short term rating was confirmed at B.

"Specifically, we believe that South Canterbury Finance's exposure to future refinancing risks is no longer tolerable at the previous BB rating," Sandy Maier said. But it has been announced by the South Canterbury that Allan Hubbard, the Chairman and controlling shareholder, will to become President for life and step aside as a director.

At last year's annual meeting Mr. Hubbard said that he intended to step aside as chairman this year. But he will still attend board meetings. In addition, he said that he is confident the decision being taken will restore South Canterbury Finance as a leading provider of finance for business development beyond the traditional banking sector.

Mr. Maier said Mr. Hubbard would focus on seeking a new equity investor for the Company. Timaru lawyer Edward Sullivan has also declared his departure as a director of South Canterbury Finance with effect from May 31.