Standard & Poor’s tagged posts
May 27, 2009 New Zealand Finance
New Zealand Prime Minister John Key has stated that the decision regarding the possible downgrade of New Zealand’s credit rating could come as early as the 28th of May, Budget release day.
While no official indication has been given by credit rating agency Standard & Poor’s as to the timing or result of their credit rating decision, Prime Minister John Key has made optimistic statements both to the possible outcome and the time until its announcements.
Three Standard & Poor’s executives were in a meeting with John Key, in an opportunity for him to elaborate on New Zealand’s future economic plans. He said in a statement after the meeting, that the executives understand his plans, although he has no indication in regards to their credit rating decision.
Prime Minister John Key has co...Read More
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...Read More
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.Read More