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

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news