2020.04.0209:56:00UTC+00Moody's Affirms New Zealand's Credit Ratings

Moody's Investors Service on Thursday affirmed the sovereign ratings of New Zealand's at 'Aaa' with 'stable' outlook.

The agency said the main drivers behind the rating affirmation were New Zealand's strong governance, including sound monetary and fiscal institutions with track records of proactive and effective policy-making.

The 'stable' outlook suggests that the credit impact of potential downside risks will be mitigated by highly effective institutions and governance.

Although New Zealand is exposed to the spread of the coronavirus outbreak, deteriorating global outlook, falling oil prices and asset price declines, Moody's said the rating is resilient to such shocks.

The rating agency said New Zealand's medium-term growth potential of around 2.5-3.0 percent is higher than many advanced economy Aaa-rated peers.

In 2020, the economy is forecast to contract with significant fiscal and monetary stimulus averting an even more severe decline. The economy will return to a full-year expansion next year, the agency noted.