20 May 2011

NZ rating downgrade avoided

5:30 am on 20 May 2011

The Government has achieved its immediate aim for the Budget, of avoiding a credit rating downgrade that could have pushed up borrowing costs.

Fitch and Standard & Poors have reaffirmed their ratings, but kept New Zealand on notice of a downgrade.

Standard & Poor's says the Government's targets for debt reduction, if met, will boost the country's creditworthiness.