A credit rating adjustment wake-up call likely on the horizon for NZ

S&P said it needs to see NZ's current account deficit narrow. (Image: Getty)

Mon, 24 Apr 2023

New Zealand’s AA+ credit rating – an incredibly strong rating – is under the spotlight by Standard and Poor's. The reason is NZ's current account deficit of 8.9% of gross domestic product (GDP), which is an indication of an unsustainable growth trajectory.“We would need to see the current account deficit narrow over the next 12 to 18 months and if it doesn’t, there is going to be increased pressure on the AA+ rating,” noted an S&P analyst.Sovereign credit analysisWhy is it important? A sovere...

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