Government given economic 'vote of confidence' by top ratings agency

Ratings agency Standard & Poor’s (S&P) has today revised its outlook on New Zealand’s AA foreign and AA+ local currency credit ratings up to positive from stable. 

The Government is welcoming the news which they say is the strongest stance S&P has held on New Zealand since September 2011.

S&P compared New Zealand's economic outlook and fiscal position against other countries with similar credit ratings. Noting that New Zealand’s per capita GDP growth "continues to out pace similarly rated peers".

"The report from S&P continues to note that New Zealand’s external balances are a risk – mostly due to private sector debt held offshore.

"However, they do note that housing-related imbalances facing our financial system have stabilised recently, and may continue to stabilise as a result of Government policy," Finance Minister Grant Robertson says.

The finance minister told TVNZ1’s Breakfast he would be working with the group on a balanced tax system
Finance Minister Grant Robertson. Source: 1 NEWS