Standard & Poor tagged posts

Tax Cases Wont Influence Bank’s Ratings

July 23, 2009 New Zealand Taxation  No comments

Both Moody’s and Standard & Poor’s credit rating agencies have affirmed that they will not be changing their outlook on the New Zealand banks involved with tax payback cases.

Following a High Court decision in which BNZ bank was found liable to pay $416 million in unpaid taxes and a possible $238 million in use of money interest, thoughts have been centered around how this would affect the banking institution. ANZ bank, Westpac and the owner of ASB, the Commonwealth Bank of Australia are all also entangled in discussion with the Inland Revenue Department about owed taxes.

Moody’s Sydney-based assistant vice-president Marina Ip stated that while significant, the decision would not see the bank pay more than 60% of its expected yearly pre-tax earnings...

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Tax Cases Wont Influence Bank's Ratings

July 23, 2009 New Zealand Taxation  No comments

Both Moody’s and Standard & Poor’s credit rating agencies have affirmed that they will not be changing their outlook on the New Zealand banks involved with tax payback cases.

Following a High Court decision in which BNZ bank was found liable to pay $416 million in unpaid taxes and a possible $238 million in use of money interest, thoughts have been centered around how this would affect the banking institution. ANZ bank, Westpac and the owner of ASB, the Commonwealth Bank of Australia are all also entangled in discussion with the Inland Revenue Department about owed taxes.

Moody’s Sydney-based assistant vice-president Marina Ip stated that while significant, the decision would not see the bank pay more than 60% of its expected yearly pre-tax earnings...

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Chance of NZ Credit Downgrade Slim

May 25, 2009 New Zealand FinanceNew Zealand Taxation  No comments

New Zealand Prime Minister John Key has said that he does not expect New Zealand’s credit to be downgraded after the release of the May 28th Budget.

Despite warnings earlier this year by credit rating agency Standard & Poor, John Key believes that New Zealand government has changed its economic track enough to ensure that no credit downgrade will occur.

As an indicator of economic stability and certainty, the credit rating has a direct effect in the cost of financing that New Zealand will face. It is therefore in the interest of all New Zealanders that the rating not drops. John Key said, in an interview on TV One show “Breakfast” that such a downgrade would see roughly 2% in interest rates.

John Key has stated previously that the new budget would be a slimmer one then seen previousl...

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NZ to See Frugal 2009 Budget

April 20, 2009 New Zealand Finance  No comments

New Zealand Prime Minister John Key has said that the upcoming budget will be more frugal in comparison to previous governments.

In an interview with the Financial Times (FT) John Key said that fears of a credit rating downgrade by rating agency Standard & Poor’s from New Zealand’s current AA+, is what is apparently keeping the upcoming New Zealand budget at a constrained level.

As such, there is a need to cut governmental spending and by necessity includes any further financial stimulus for New Zealand. These comments are partnered with an OECD report which states that New Zealand is likely to remain in a recessionary state throughout 2009 and possibly recover “hesitantly” in 2010.

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