Fitch affirms long-term rating of Heartland

NZX/ASX Release Fitch affirms long-term rating of Heartland 19 May 2020 Fitch Ratings (Fitch) has affirmed the Long-Term Issuer Default Ratings (IDR) of Heartland Group Holdings Limited (NZX/ASX: HGH) (Heartland Group) and Heartland Bank Limited (NZX: HBL) (Heartland Bank) at 'BBB' and the Long-Term IDR of Heartland Australia Group Pty Ltd (Heartland Australia) at 'BBB-'. The Outlooks remain Stable. The affirmation reflects Fitch's view that the bank has solid buffers to withstand its base-case scenario and the stable outlook indicates the bank enters the economic downturn with sufficient headroom in its key financial metrics. In its attached press release, Fitch noted that "the ratings of [Heartland Group] and [Heartland Bank] are driven by the group's consolidated risk profile, which reflect its stronger-than-peer profitability". A number of other New Zealand financial institutions have either had their rating downgraded, or their outlook revised from stable to negative, by Fitch. Heartland is pleased with this recognition which it attributes to its differentiated strategy, higher relative margin on resilient asset portfolios and strong cost management through delivery of products to its customers by lower cost digital platforms. - Ends - For further information, please contact: Andrew Dixson Chief Financial Officer M: 021 263 2666 E: andrew.dixson@heartland.co.nz Address: Level 3, Heartland House 35 Teed Street Newmarket, Auckland New Zealand End CA:00353347 For:HGH Type:GENERAL Time:2020-05-20 08:30:33