Fletcher Building lifts on Moody's credit rating

The news: Shares in NZ building materials company Fletcher Building had lifted by 1.8% early Tuesday afternoon after Moody's assigned the group an investment grade Baa2 credit rating with a stable outlook.

The numbers: Fletcher Building posted an annual net profit of NZD235 million ($217 million) last month, down 46% from the year before due to provisions of NZD255 million after a fire at a construction site damaged two NZ projects.

The context: Fletcher building is one of New Zealand's largest listed companies, with a market cap of $3.48 billion. Australian division chief executive Dean Fradgley announced his retirement in August, but will remain with the company until early next year as the search for his replacement continues.

What they said: "Obtaining an investment grade credit rating is an important step in respect of our long-term funding strategy which will allow us to further diversify our funding sources," Fletcher Building CFO Bevan McKenzie said in a statement.