According to Standard & Poor's, a Rating Agency, New Zealand has strong Government finances which are a foundation of its top credit rating. S&P has given New Zealand an AA plus which means that New Zealand has a firm position and the rating will not change soon.
S&P's Credit Analyst, Kyran Curry, says that the Government has a strong financial position which will enable it to deal with changes in the international scenario. Curry further added that New Zealand will remain unaffected by the financial mayhem of the euro zone.
Curry says that there are limited dangers for New Zealand as long as countries like China, America and Australia are recovering from the financial losses.
However, Minister of Finance, Bill English reveals that the main issue for the Government is the cost of its external debt which is predicted to spiral in the coming times. Mr. Bill further added that any decrease in credit rating will boost the credibility and consequently raise the cost of the capital.
New Zealand is showing a positive outcome in all the fields except external debt. Thus, at the moment New Zealand is showing high level of credit worthiness. However Mr. English warns of a possible credit bubble in China and he also stressed on the need for New Zealand to get timely premiums from US and UK consumers.
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