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 come under attack from opposition leaders recently for apparently paying too much head to credit rating agencies in the writing of the budget. Labour leader Phil Goff was a prime figure behind these accusations, saying that New Zealand should be more concerned with creating jobs as opposed to “pandering” to credit rating agencies.

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 previously. Also he claimed that there have been savings and increases in efficiency with government spending, to aid in maintaining a good credit rating while not cutting back in entitlements to New Zealanders.

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.