South Canterbury Finance's owner, Allan Hubbard, has stepped aside as chairman of the company, just as the South Island lender had its credit rating downgraded.

Mr. Hubbard says a new chairman will help to focus the company on finding a new equity partner and improving liquidity - but he will still have an involvement in the company, becoming president for life.

Standard and Poor's has downgraded South Canterbury's credit rating from B+ to BB, saying the restoration of its financial profile hadn't been quick or sufficient enough.

But SCF chief executive Sandy Maier says the downgrade doesn't give the company full credit for the progress it’s made.