25 Feb 2011

Agency leaves NZ rating unchanged

1:19 pm on 25 February 2011

International credit rating agency Standard and Poor's says Tuesday's devastating earthquake has not affected the country's rating.

In November, Standard and Poor's warned New Zealand's AA+ rating could be downgraded, after expressing concern about the amount of money owed to foreigners.

In an early assessment, it says the earthquake will lower revenue and raise recovery costs, weakening the government's finances but that the Government has enough flexibility to absorb the extra costs from the quake.

Christchurch City Council's rating has also been unaffected by the quake.