The international credit rating agency Fitch and financial service provider “Standard and Poor” of the US have underrated the debt of New Zealand.
The market analysts revealed about the disorder in the economic growth worldwide along with New Zealand. Fitch underrated the foreign currency rating from AA+ to AA, and S&P also estimated a lower rating of foreign currency and long term currency rating of the country.
The companies underrated the foreign currency rating at a lower price because the nation‘s income is dependent on the tourism, it earns from the world but in return, the world is not earning that much from New Zealand.
The Bank of New Zealand Treasurer Tim Main states the fall in the rating also comes because of the failure of the efforts being made by European Union to deal with debt-crisis in Greece and various other parts of Europe, including Italy and Spain.
However, New Zealand is counted among the advanced nations, because they were free from any sort of debt crisis and possesses 150% of the household disposable income which is close to the percentage recorded in Australia at 157% and Britain at 159%.
Finance Minister Bill stated: “The ratings news today reinforces the need for the Government to continue with its clear and balanced plan to get on top of that debt”.
