New Zealand's Overseas Investment Office has declined HNA Group's application to acquire ANZ NZ subsidiary UDC Finance. UDC's core business is financing vehicles and equipment for people and companies across New Zealand. David Hisco, ANZ Bank group executive and New Zealand CEO, said that while the sale agreement between the parties remains in place, unless HNA successfully overturns the OIO decision, the sale will not proceed."If the sale does not proceed, we'll assess our strategic options regarding the future of UDC. It's a great business and there is no immediate requirement to do anything, particularly given the strength of ANZ's capital position," Hisco said.The news that the OIO had declined HNA Group's application to acquire UDC Finance motivated S&P Global Ratings to announce that its BBB/A-2 ratings on UDC remain on CreditWatch with negative implications."We understand that the HNA Group is considering its next steps in this matter. We expect to keep our ratings on UDC on CreditWatch with negative implications until either the sale is successfully completed or Australia and New Zealand Banking Group Ltd ends the sale process with HNA Group," S&P said. "If the sale does not ultimately proceed, we expect to affirm our 'BBB/A-2' issuer credit rating on UDC. In that scenario, we expect our long-term rating on UDC would continue to benefit from a one-notch uplift above the finance company's stand-alone credit profile of BBB-, reflecting our assessment of the likely support from its parent ANZ (rated AA- with a negative outlook).ANZ said via media release that the UDC transaction proceeds were equivalent to about 10 basis points of APRA CET1 capital. If the transaction does not go ahead, ANZ's FY18 earnings will no longer be adjusted for the sale. The transaction summary detail was included in the ANZ Banking Group News Release of 11 January 2017.