Finance company NZF Money has had its rating downgraded by Standard & Poor's by two notches, serving as a reminder that this sector has yet to come out of woods after the spate of collapses during the past few years. S&P lowered the rating to CCC from B, citing the company's delicate liquidity situation and its heavy reliance on cash generated from repayment of past due loans. The rating is also on CreditWatch with negative implications. NZF Group, which is the parent of NZF Money, was the first company in New Zealand to raise funds via residential mortgage-backed securities since 2007. It raised NZ$100 million in June 2010. Class A1 and A2 of the issue, comprising about $97 million, was rated AAA by S&P. The ratings agency hasn't issued any update on those ratings. S&P noted that the NZF Group has no committed external back-up lines of liquidity, and, with debenture stocks progressively maturing in 2011, the pressure on liquidity could build up over the course of the year.   As of September 30, NZF had drawn about $105 million from a $225 million warehouse facility with Westpac, which was against residential mortgages. The facility is due for repayment on October 18.   Debenture stock stood at $29.7 million in September, down from $58 million in March. The group also has about $20 million of capital notes due for expiry in March, which it is asking holders to either renew or to opt for shares instead. NZF's net loans stood at $244 million in September, down from $259 million in March 2010. Past due assets rose to $17 million, from $11 million, but impaired assets fell to $4 million, from $11 million, during the period.