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

 


NZ credit ratings, stable outlook affirmed by S&P

NZ credit ratings, stable outlook affirmed by S&P

By Tina Morrison

Aug. 26 (BusinessDesk) - New Zealand's credit ratings were affirmed by Standard & Poor's, citing the nation's fiscal and monetary policy flexibility, economic resilience, public policy stability and sound financial sector.

S&P kept its AA foreign currency long-term rating and AA+ local currency long-term rating, while the short-term ratings were affirmed at A-1+, it said in a statement. The agency also retained its stable outlook on New Zealand, in contrast to Fitch Ratings which last month raised its outlook to positive from stable. Moody's also has a stable outlook.

"New Zealand's fiscal performance is gradually improving, following the negative impacts of the global recession and the 2010-2011 Canterbury earthquakes," S&P said. "We expect the central government - regardless of which party is in power - to continue to improve budget performance over coming years."

The government's cash deficit improved to 2.5 percent of gross domestic product in 2014, from a peak of 7 percent in 2011, S&P said. Net government debt is expected to peak at about 24 percent of GDP in 2016, before gradually declining with the debt-servicing burden to remain moderate, the agency said.

Factors moderating the country's strength include very high external imbalances, along with high household and agriculture sector debt and dependence on commodity income, S&P said. The agency cited New Zealand's strong and growing links with China's economy as a risk to its growth outlook and credit quality.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news