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.”


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news