Massey University banking analyst David Tripe says a credit rating downgrade of the major New Zealand banks may push up interest rates by only a few basis points.
On Friday, Moody's downgraded their credit ratings by one notch, to reflect the challenging economic environment in New Zealand.
It warned their high reliance on overseas funding also left them exposed to a downturn in global credit markets.
The downgrade followed a similar move on Australia's big four banks last week.
David Tripe says the downgrade can't be considered too unreasonable and the agency may consider improving the ratings when the economy improves, but that could be some time away.
Meanwhile, Standard & Poor's has lifted its rating of PSIS from BB+ to BBB- and changed its outlook from positive to stable.
It says the upgrade reflects strong membership at PSIS, which underpins a sound and reasonably resilient business profile.
