New Zealand needs sustainable improvement in its fiscal position and debt levels to secure an upgrade in its credit rating outlook, according to Fitch Ratings.
Fitch put New Zealand's AA+ rating on watch for a possible downgrade in July last year due to worries about the country's huge current account deficit and rising external debt.
Fitch says New Zealand needs more than one-off or short-term improvements in the current account deficit or government finances to change its view.
It will wait until after the Budget in May to reassess New Zealand's overall credit rating.
