US ratings agency Moody's out with a NZ annual update 6 April
- also fiscal metrics
- vulnerabilities mitigated by effective institutions
- global demand for NZ agriculture, tourism related products will remain robust
- New Zealand's economic profile supports the newly elected coalition government's credit-positive commitment to preserving fiscal surpluses and reducing government debt further over the next five years.
- stable outlook on New Zealand's Aaa sovereign rating is anchored by Moody's expectation that New Zealand will maintain strong fiscal and monetary discipline that provide the economy and financial system capacity to adjust to shocks and keeps its credit metrics consistent with a Aaa rating, even in the event of such shocks materializing
- moderate gross government debt levels of around 30% of GDP afford the government higher fiscal room than many other similarly rated high-income sovereigns to counter shocks.
However, Moody's say they could "downgrade New Zealand's Aaa rating if a large external or domestic shock - perhaps from a natural disaster, a housing market correction or a sharp fall in global trade - results in more government debt that is not reversed in subsequent years. Such an outcome would imply diminished fiscal and institutional strength, and undermine the health of the banking system by damaging access to external finance."
NZDUSD unfazed by any of it at 0.7248 still tightly bound with NFPs/wages looming large at 12.30 GMT. Support/bids 0.7220-30. Res/offers 0.7260-80
NZDUSD
