New Zealand Dollar Could Be Downgraded

January 13, 2009 International FinanceNew Zealand Finance  No comments

The credit rating agency Standard & Poor’s has warned that it might revise and lower its rating of the New Zealand dollar depending on the outcome of the next government budget.

 

Kyran Curry, Standard & Poor’s sovereign analyst, has laid the blame for the outlook revision on what they perceived to be a narrowing of New Zealand’s economic policy flexibility and increased imbalance, characterized by the significant current account deficit.

 

The downgrade to the New Zealand Dollar is not imminent nor is it definite, with the final decision pending on the perception of Standard & Poor’s on decisions made policymakers, especially in regards to medium-term fiscal consolidation.