International credit rating agency Standard Poor's says it sees no immediate need to downgrade New Zealand's rating because of the AMI rescue package.
The Government is providing AMI Insurance with a back-up financial support package of up to $500 million in case the company does not have enough money to cover all the Christchurch earthquake claims.
Standard and Poor's is one of two major credit ratings agencies which has New Zealand's rating on review for a downgrade that could drive up interest rates.
It says the Government's support plans for the country's second-biggest insurance company is another issue it will look at when assessing New Zealand's rating after the Budget in May.
Finance Minister Bill English says the announcement on Thursday would not necessarily increase this year's Budget deficit, as it would be counted as an investment in the books.
However, Mr English conceded there could eventually be losses associated with any investment it makes in AMI.
Standard and Poor's says a credit downgrade because of the Christchurch earthquake bill would have happened by now if it thought it necessary.
Its New Zealand analyst, Kyran Curry, told Morning Report it will be looking at how the Budget tackles spending but its main focus is always on what the country owes overseas.
