FX.co ★ S&P Affirms New Zealand’s Ratings at AA+

S&P Global Ratings announced on Wednesday that it has reaffirmed New Zealand's foreign-currency sovereign credit rating at AA+/A-1+ and its local-currency rating at AAA/A-1+, maintaining a stable outlook for both. Nonetheless, the agency highlighted that addressing the fiscal deficit is crucial. "We might consider lowering our ratings on New Zealand if the fiscal deficit does not decrease as projected, which could lead to significant increases in government debt and interest expenses," the agency stated. On the other hand, a notable improvement in fiscal metrics could warrant a rating upgrade. The agency anticipates New Zealand’s GDP will rise to approximately 2.2%–2.3% over the next three fiscal years, with the effects of U.S. tariffs expected to be manageable. Moody’s has most recently assigned New Zealand a credit rating of Aaa, also with a stable outlook.