31 October 2012 6:38am

State-owned New Zealand Post and its subsidiary Kiwibank have had their credit ratings cut one notch by Standard & Poor's because of the group's growing reliance on its banking operations and an expectation of dwindling postal revenues.

Their credit ratings were cut to A+, from AA-, with a stable outlook, as Kiwibank faces tough competition in the banking sector and as NZ Post's traditional postal service shrinks, forcing the state-owned enterprise to seek revenue elsewhere.

"The downgrade reflects our view of the group's significant contingent exposure to its large and...