Moody's Investors Service in a new report on NZ, credit profile supported by:

  • very strong institutions and policy effectiveness
  • a robust fiscal position compared with peers ... ample fiscal flexibility to respond to both long-term spending needs related to social demands, or a potential sudden rise in expenditure to support the economy in a subsequent downtum

External risks stem from

  • the country's reliance on soft commodities exports
  • and its net international liabilities, which despite having narrowed, remain large compared with Aaa-rated peers

"We expect New Zealand's economy to remain resilient in the face of external headwinds because of its trade openness, diverse and competitive agricultural export base, flexible labour and product markets, high wealth levels and supportive demographics, driven by solid net immigration"

Stable outlook on the Aaa rating

  • a negative rating action is unlikely in the near term