Wellington, Oct 15 NZPA - South Canterbury Finance is signalling that it will make a material announcement.

Trading in the finance company's listed debt securities was halted this afternoon pending an announcement.

South Canterbury Finance had been talking to investors after a credit rating downgrade last month triggered a review of a $US100 ($NZ137) million private placement facility in the US.

Standard & Poor's cut South Canterbury's credit rating to the non-investment, or junk, grade of BB plus.

The rating downgrade entitled the private placement investors to require repayment three months following the downgrade.

South Canterbury Finance's owner, Southbury Group, has appointed Forsyth Barr and Harmos Horton Lusk as advisers to assist in the restructuring and recapitalisation of the group.