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

 

Wainui: Major Infrastructure Partnership For North Auckland

Minister of Housing and Urban Development Phil Twyford and Auckland Mayor Phil Goff today announced a partnership that will fund $91 million of roading and wastewater infrastructure to support the building of 9000 homes... More>>

ALSO:

NZ's Space Programme: Rocket Lab Reaches Orbit Again

Rocket Lab has continued the success of its 2018 orbital launch program with the launch of seven payloads to orbit. The mission marks Rocket Lab’s second successful orbital launch and deployment of customer satellites. More>>

ALSO:

Supreme Court: Labelling Swamp Kauri Slab A Tabletop Doesn't Make It One

New Zealand's highest court has ruled that exporting slabs of swamp kauri as "tabletops" or swamp kauri logs as "totem or temple poles" is illegal under the Forests Act. More>>

ALSO:

Starting Ending Offshore Drilling: Green Party Celebrate Passing Of Oil And Gas Bill

“This Bill is an essential first step in winding down offshore exploration for new sources of fossil fuels. We are in Government together to do this work, to create the change our people and our planet need to flourish." More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged

The Official Cash Rate (OCR) remains at 1.75 percent. We expect to keep the OCR at this level through 2019 and into 2020. More>>