Credit Ratings, Capital Management & Corporate Treasury

About

In the wake of the GFC, organisations have all become a lot more risk-aware. Financial risk management is top of mind, both at the CFO - CEO level and at the boardroom table. There is more scrutiny over investment and financing decisions than ever before.

 Credit ratings are one of several tools that investors and those in the capital markets can use when making decisions about bonds or other fixed income investments. Credit ratings are statements of opinion, not statements of fact or recommendations to buy, hold or sell securities to make investment decisions. Whether your creditworthiness is rated by a credit rating agency, or by your retail bank, you need to do all you can to ensure your balance sheet and capital structure is in the optimal condition.

Conferenz is proud to announce its first Credit Ratings, Capital Management and Corporate Treasury Summit. This tightly focussed and intensive one day Summit will deepen your understanding of the credit ratings process, assist you in refining and perfecting your treasury function and developing effective financial risk mitigation techniques. The one day format ensures the most critical elements are covered for the time poor executive, and the calibre of speakers will ensure the delivery of real strategies to take back to your office the next day.

Our line up of speakers includes:
Anthony Flintoff, Managing Director and Head of Corporate & Government Rating Group, Standard & Poor’s
Mark Yeoman, Chief Financial Officer, New Zealand Post Group
Stephan Deschamps, Treasurer, Fonterra
Chris O’Neale, Director – Debt Capital Markets, ANZ National Bank
Derek Phillips, Associate Director, Bancorp Treasury Services Ltd
Ian Greer, Managing Director - Corporate & Government Rating Group, Standard & Poor’s

Workshop

WORKSHOP: The financial risk hydra: slaying the many-headed beast

31 August 2010 (Post-conference workshop: 9.00am – 5.00pm)

Risk management forms an integral part of developing a sound treasury policy. Risk can take many forms at the credit and treasury level, from FX, liquidity, credit, derivative, operational and interest rate risks. Managing these risks effectively is one of the best methods that an organisation can improve their credit rating or maintain favourable financing terms. This intensive workshop will explore various forms of risk, the effects they have on your credit rating and access to funding, and what you can do to best mitigate this.

Interest Rate risk
• How will the upcoming rise in interest rates affect your treasury management?
• How do you manage the timing of your maturities for best risk mitigation and optimised returns?

Operational risk
• How much control does the treasurer/CFO have over operational matters?
• What internal controls and reporting do you need to put in place to mitigate these risks?

Currency and Commodity Risk
• Do the old hedging strategies still apply in the new environment?
• What should be on your task list in 2011?

Treasury Policy
• Why is it important to have a sound treasury policy in your organisation?
• Involving the board and the finance team in the formation and implementation of your treasury policy

Breakfast

Breakfast with the Economists 2010

New Zealand's original and best known economic debate platform, Breakfast with the Economists. This complimentary breakfast session is taking place at the Hyatt prior to the conference. The theme for this year's debate is 'The Economic Landscape – River Deep or Mountain High?'

Chaired by Stephen Koukoulas — Principal Adviser Financial Markets Department of Treasury.

Featuring a selection of leading economists, including:

  • S&P Global Chief Economist - Dr David Wyss
  • ANZ Chief Economist - Warren Hogan
  • ANZ (NZ) Chief Economist - Cameron Bagrie
  • ASB Bank Chief Economist - Nick Tuffley
  • Westpac NZ Senior Economist - Dominick Stephens
  • BNZ Senior Economist Markets - Craig Ebert

Secure your place now

Please note: this breakfast is being organised by Standard & Poor's and ANZ independently of Conferenz. All enquiries with regards to the breakfast should be directed to Standard & Poor's.

Agenda

Agenda: Day 1

8.30

Registration & Coffee

9.00

Opening remarks from the Chair

David Corbett, Partner Financial Risk, PricewaterhouseCoopers

9.10

KEYNOTE ADDRESS: Credit ratings and industry outlook for New Zealand

This opening session will address the current state of financing and credit in the New Zealand market, and the future outlook for organisations looking at their debt, capital and refinancing options.
• Current industry regulation under the government’s Extended Deposit Guarantee scheme and how this affects your organisation
• The role of credit ratings to New Zealand businesses now and in the future
• The fundamental change in the ratings environment post-GFC
• How the increased focus on risk has had a flow on effect to the importance of credit ratings

Brendan Flynn, Senior Director and Head of the Financial Institutions and Public Finance Ratings Group, Standard & Poor’s

10.00

What do ratings agencies and lenders look for in your organisation?

Having a deep and robust understanding of the key ratios and metrics that financial agencies use to determine the financial health of your organisation is key to improving these ratings over time. Credit rating organisations and banks use many of the same metrics when analysing an organisation’s creditworthiness, so whatever your funding situation, this session is not to be missed
• Key financial metrics measured within the organisation
• Qualitative factors such as the organisation’s risk management and governance
• External (industry and economic) factors

Joanna Lawn, Head of Client Insights and Solutions Institutional Banking, ANZ

Speaker has declined permission for her material to be online

10.50

Morning tea

11.10

The balance sheet: Cornerstone to your optimal credit rating?

Optimising your balance sheet is one of the most effective ways in which your business can maintain a healthy credit rating, or look to improve it over the longer term. Certain factors need to be taken in to consideration first, if your balance sheet adjustments are to be successful.
• Key balance sheet metrics to consider
• Timing of maturities of debt financing and interest rates and the effects that may have on balance sheet volatility
• IFRS considerations for your balance sheet and how that will affect your treasury policy

Derek Phillips, Associate Director Corporate Finance, Bancorp Treasury

11.55

Is there an optimal capital structure for your business?

Different organisations take different approaches when it comes to structuring their funding through different mixes of debt and equity. This forms one of the key ratios that ratings agencies take into account while looking at an organisation.
• Why do we see different industries adopt different capital structures?
• Why we see different organisations within the same industry adopt different capital structures?
• How far should you compromise a commercially sensible decision to accommodate what a rater wants to see?

Phil Barry, Principal, Taylor Duignan Barry

12.40

Lunch

1.40

Understanding your standalone credit profile

With a solid understanding of your cashflow position, your business risks and balance sheet, you should be able to model your credit risk at the portfolio level. Deposit takers will also be able to effectively model counterparty credit risk and the effects of spreads. This session discusses the ins and outs, the strengths and the weaknesses of credit modelling.
• How credit risk modeling compares with traditional forms of credit risk mitigation
• Ratios and factors analysed in credit risk models
• Monitoring and managing your cash portfolio as an effective risk mitigation tool

Grant Allerby, Read of Risk Analytics, Westpac

2.25

Embedding an effective working capital management programme in your organisation

With major providers of capital still much more risk averse than they were pre-GFC, effective working capital management is top of mind both at the Board and CFO level. As your cash position can change rapidly, it is crucial that you have a robust liquidity management strategy in place.
• The effect liquidity plays in assessing credit ratings and the availability and terms of funding
• Key liquidity risks and how they can be circumvented
• Retaining diversity and flexibility in cash sources
• What metrics can you use to assess the efficiency of your working capital management?

Ian Greer, Managing Director Corporate and Government Ratings Group, Standard & Poor’s

3.10

Afternoon tea

3.30

Panel Discussion: Managing the ongoing relationship with your credit raters, lenders and major creditors

Whether you are a non-bank deposit taker undergoing a credit rating for the first time, or a large corporate who has been rated for years, developing a fruitful relationship with your rating agency of choice is of critical importance. Ensuring your credit rating agency has a deep understanding of your business, its strategy and the environment it operates in will make sure the ratings process is as equitable as possible.
• How to get the most out of your rating relationship
• What information and guidance can you give your rating agency?
• What do credit raters - and banks - really want to know about your business?

Mark Yeoman, Chief Financial Officer, New Zealand Post Group
Stephan Deschamps, Treasurer, Fonterra
Chris O’Neale, Director – Debt Capital Markets, ANZ National Bank
Brendan Flynn, Senior Director and Head of the Financial Institutions and Public Finance Ratings Group, Standard & Poor’s

4.15

Panel Discussion: Board and governance considerations in treasury and credit policy

The Board has a key role to play in your treasury management. Their wishes set the risk appetite and exposure you are able to have. This session will explore the how senior finance and treasury personnel can best meet and even exceed board expectations.
• How much does the Board need to know?
• How good is the Board’s understanding of financial and treasury risk?
• What does the Board want from the organisation’s treasury and financing policy?

John Brabazon, Director, Auckland International Airport
Michelle Smith, Director, Pyne Gould Corporation
Phillip Meyer, Deputy Chairman, Institute of Directors; Chairman, Australian Financial Services Group & NZ Institute of Management (Central)
More panellists to be confirmed

5.00

End of conference & networking drinks

Sponsors/Partners

Interested in sponsorship?

There are some exclusive opportunities to promote your company, and its products and services, at this leading event. Contact the sponsorship team below to request a prospectus or discuss the options, or view more about event sponsorship.