Fitch on NZ - says high household debt a key risk, but its stable

Fitch ratings:

• capital proposals unlikely to affect New Zealand's major bank franchises
• says high household debt in New Zealand is broadly stable but is a key risk
• says expects modest deterioration in asset quality in New Zealand over next year, in part because impaired loan levels are around historical lows
• the banks' strong domestic franchises allow for stable business model that helps offset continued high macroeconomic risks in New Zealand

The capital requirement Fitch refers to kick in in a few years time. Its the debt and the asset quality comments of more interest. Only marginally so though.