Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fitch revises outlook on NZ’s credit rating to positive

Fitch revises outlook on NZ’s credit rating to positive

By Pam Graham

July 9 (BusinessDesk) – Fitch Ratings has revised the outlook on New Zealand’s credit rating to positive from stable, citing improved government accounts while recognising the country’s exposure to China and Australia as a risk.

The AA long term credit rating was affirmed. The improvement in outlook means an upgrade is possible if debt is reduced and if New Zealand can learn to “save anti-cyclically into the boom”.

New Zealand is rated Aaa with a stable outlook by Moody’s and AA with a stable outlook by Standard and Poor’s.

Finance Minister Bill English said the improvement in Fitch’s ratings outlook was a vote of confidence in the New Zealand economy and the government’s programme.

Fitch said vulnerabilities remained, primarily related to net external debt and a dependence on strong commodity prices.

“New Zealand remains heavily exposed to developments elsewhere, notably in China and Australia,” Fitch said.

Fitch notes the government is projecting its first fiscal surplus since 2008 in the 2014/15 budget.

“The fiscal consolidation drive continues to be strong and Fitch believes it is supported across the political spectrum,” Fitch said.

“The authorities have a credible plan to lift the fiscal surplus in the years ahead and reduce net core Crown public debt to 20 percent of GDP by FY20.”

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news