I had the headline earlier: S&P affirms NZ ratings at AA
Now, from Fast FT (gated): New Zealand not fit for an upgrade – S&P
- S&P maintained its AA rating with a stable outlook on Tuesday. Moody’s rates the country AAA – the highest possible grade – while Fitch last month upgraded its outlook on its AA rating from stable to positive
- Standard & Poor’s citing concerns of high household debt, dependence on commodity exports and growing links with China
S&P said New Zealand has clear strengths:
- “economic resilience”
- fiscal and monetary policy flexibility
But the economy is also dependent on income from commodity exports, such as dairy, where prices are falling.
S&P said it’s concerned that terms of trade – a measure of its buying power abroad – “may fall further from their recent peak”
