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

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)
Cameron Bagrie
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...

More Finance

Fast-food chain float could give Fonterra a steer
Finance

Brian Robins: Fast-food chain float could give Fonterra a steer

After a dearth of IPOs, all eyes are on Guzman y Gomez. 

Whineray appointed new Jarden chair
Finance

Whineray appointed new Jarden chair

Fraser Whineray quit as Fonterra's chief operating officer in July 2023.

Murray Jones 19 Jun 2024
Bluebird improves profits after investment in Wiri site
Finance

Bluebird improves profits after investment in Wiri site

Bluebird Foods NZ has posted a profit of $13.2m for the year ended December 2023.

Staff reporters 18 Jun 2024
The danger of seeking out a returns Booster
Finance

Paul McBeth: The danger of seeking out a returns Booster

The FMA needs to move swiftly in its bid to be a related party pooper.

Paul McBeth 18 Jun 2024