29 JANUARY

NEW ZEALAND GAZETTE

1. If the institution is not, at the time of assessment, party to an Approved Borrowing Agreement which specifies a Minimum Required Interest Cover Ratio, the Default Interest Cover Ratio is less than 3.0.

2. If the institution is, at the time of assessment, party to an Approved Borrowing Agreement which specifies a Maximum Permitted Debt/Equity Ratio and/or a Maximum Permitted Liabilities to Assets Ratio, the debt/equity ratio calculated in accordance with that Approved Borrowing Agreement and on the basis of those group financial statements is more than 0.75 times that Maximum Permitted Debt/Equity Ratio and/or the liabilities to assets ratio calculated in accordance with that Approved Borrowing Agreement and on the basis of those group financial statements is more than 0.75 times that Maximum Permitted Liabilities to Assets Ratio.

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   If the institution is not, at the time of assessment, party to an Approved Borrowing Agreement which specifies a Maximum Permitted Debt/Equity Ratio and/or a Maximum Permitted Liabilities to Assets Ratio, the Default Debt/Equity Ratio is greater than 20%.

3. Operating Cash Receipts is less than 111% of Operating Cash Payments.

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4. The Liquid Funds Ratio is less than 12.0%

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   Financial ratios calculated by reference to the council-approved group budget of an institution for the financial year current as at the time of assessment

5. Operating Surplus/Deficit is negative or less than 3.0% of Total Revenue.

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6. If the institution is, at the time of assessment, party to an Approved Borrowing Agreement which specifies a Minimum Required Interest Cover Ratio, the interest cover ratio calculated in accordance with that Approved Borrowing Agreement and on the basis of that group budget is less than 1.25 times that Minimum Required Interest Cover Ratio.

   If the institution is not, at the time of assessment, party to an Approved Borrowing Agreement which specifies a Minimum Required Interest Cover Ratio, the Default Interest Cover Ratio is less than 3.0.

7. If the institution is, at the time of assessment, party to an Approved Borrowing Agreement which specifies a Maximum Permitted Debt/Equity Ratio and/or a Maximum Permitted Liabilities to Assets Ratio, the debt/equity ratio calculated in accordance with that Approved Borrowing Agreement and on the basis of that group budget is more than 0.75 times that Maximum Permitted Debt/Equity Ratio and/or the liabilities to assets ratio calculated in accordance with that Approved Borrowing Agreement and on the basis of that group budget is more than 0.75 times that Maximum Permitted Liabilities to Assets Ratio.

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   If the institution is not, at the time of assessment, party to an Approved Borrowing Agreement which specifies a Maximum Permitted Debt/Equity Ratio and/or a Maximum Permitted Liabilities to Assets Ratio, the Default Debt/Equity Ratio is greater than 20%.

8. Operating Cash Receipts is less than 111% of Operating Cash Payments.

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9. The Liquid Funds Ratio is less than 12.0%.

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   Financial ratios calculated by reference to any Reforecast of an institution for the financial year current as at the time of assessment

10. Operating Surplus/Deficit is negative or less than 3.0% of Total Revenue.

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11. If the institution is, at the time of assessment, party to an Approved Borrowing Agreement which specifies a Minimum Required Interest Cover Ratio, the interest cover ratio calculated in accordance with that Approved Borrowing Agreement and on the basis of that Reforecast is less than 1.25 times that Minimum Required Interest Cover Ratio.

    If the institution is not, at the time of assessment, party to an Approved Borrowing Agreement which specifies a Minimum Required Interest Cover Ratio, the Default Interest Cover Ratio is less than 3.0.