Prime Minister John Key has shrugged off a credit downgrade as his government retains a substantial lead in opinion polls.
On Friday morning, Fitch lowered New Zealand's credit rating by one notch to AA, citing the country's rising debt and persistent and widening current account deficits. Standard & Poor's downgraded the country's rating one notch from AA+ to AA in the afternoon.
In 2009 Mr Key made much of preventing a credit downgrade for New Zealand, but now says National cannot be blamed for the ratings agencies' decision.
Labour Party leader Phil Goff says Mr Key is responsible for the downgrade and hopes it might at last start to shift public sentiment about the Government.
In two polls released on Sunday, the National Party scored well over 50% support while Labour fell below 30%.
Mr Goff acknowledges being that far behind in the polls is a challenge, but says Labour's policies do have public support.
Mr Key, like Mr Goff, believes once the Rugby World Cup is over voters will start to focus on politics.
He says National will campaign on its record in government, as well as on its plans to reform welfare.
