Bloomberg (gated) carries the report, in brief:
- S&P Global Ratings is “broadly comfortable” with New Zealand’s sovereign rating outlook
- closely watching NZ large current-account deficit and weak economic growth
- New Zealand’s current account deficit was 6.8% of gross domestic product in the 12 months through March ... among the widest of advanced economies, reflecting subdued exports, stronger-than-expected imports and debt servicing costs ... “Our base case is that it will narrow to something like 5% of GDP over the next couple of years. But if it doesn’t, that’s going to be probably a downside trigger for the rating.”
New Zealand is currently rated AA at S&P, with a stable outlook (means it’s unlikely that the rating will change over the next two years)
