The credit rating for New Zealand, which was maintained to AA plus by Fitch Ratings earlier, has now been revised from stable to negative by the agency.

The result, the agency says, is based on economic forecasts and the country's high level of debt.

As per Axa Chief Economist Bevan Graham, "We have some big global imbalances. We're reliant on others' savings - we don't save enough. So a timely reminder of that,
and that we've really got some work to do."

The Government earlier this year had proposed putting off tax cuts as budgetary measures, in order to keep New Zealand's ratings positive.

This initiative seemed to have paid off well since ratings agency Standard and Poor's soon upgraded its outlook - from negative to stable.

However, now the outlook given by Fitch is entirely the opposite of that by Standard and Poor's. 

National Business Review Editor-in-Chief Nevil Gibson said: "This is a serious warning to the Government that our overseas debt is too high."

However, for economist Dr Ganesh Nana, it has not come as much of a surprise. 

He specified: "We in New Zealand should know well that we are not well placed in terms of how much borrowing we have had to do over the past few decades."

According to Mr. Nana, credit ratings can also be over rated. 

Mr. Nana concluded: "I wouldn't put a credit rating as high as the current Government has on their agenda for economic indicators. The credit rating comes as a result of our performance."