The Earthquake Commission has lost its credit rating with Standard and Poors.
The agency has withdrawn the commission's AA+ rating at its own request and left it with no rating at all.
EQC has long admitted it will use up its funds paying for the Canterbury earthquakes. Standard and Poor's estimates it will need a Governmment top-up of $1.2 billion.
Despite this, the credit rating agency's analysis is benign. It says the Government has a moral and legal obligation to make payments when the commission's funds run short.
The commission pays the Government $10 million a year for a Crown guarantee.