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

 

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Hurunui: Crown Irrigation Invests Up To $3.4m In North Canterbury

Crown Irrigation Investments will invest up to $3.4m in the Hurunui Water Project, an irrigation scheme that will be capable of irrigating up to 21,000 hectares on the south side of the Hurunui River in North Canterbury. More>>

ALSO:

Not So Great:Butterfly Eradication Success

The invasive pest great white butterfly has been eradicated from New Zealand in a world-first achievement, Primary Industries Minister Nathan Guy and Conservation Minister Maggie Barry say. More>>

Gordon Campbell: On The Government’s Tax Cuts Fixation

Long before the earthquake hit, the dodginess of the government tax cuts programnme was evident in the language of its packaging. It is being touted as a “tax cuts and family care” package... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news