Rationale
In 2016, New Zealand’s country governance and economic strength remAIn strong, which is illustrated by significant improvement in economic growth, reduced unemployment rate and stabilized inflation condition. New Zealand is a highly developed economy with effective industrial structure, stable banking system and good business environment. However, the country is facing the problem of aging population and structural shortage of labors. In terms of fiscal position, New Zealand has a strong public financing strength with continuous growth in fiscal surplus. Government debt is effectively controlled and well covered by the fiscal revenue. External financing strength is weakened by the country’s international trade position. Current account receipts reduce marginally while external debt maintains at a relatively high level. New Zealand is facing a certain level of external debt repayment pressure. In conclusion, China Lianhe Credit Rating Co., ltd (“Lianhe Ratings”) affirmed New Zealand’s long-term local currency credit ratings at AAAi. and long-term foreign currency credit ratings at AAi+. The results indicate New Zealand has the low expectation of sovereign credit risk, and its capacity to meet its financial commitment on the obligation is very strong.
New Zealand’s economy is expected to maintain steady growth, benefiting from the rising international dairy prices, loosening of monetary policy, growing consumption driven by net immigration and government incentive support for infrastructure investment. Lianhe Ratings believes that the outlook for its long-term local and foreign currency are stable.
Strengths
Ø Strong country governance capacity featured with high level of transparency and efficiency.
Ø Good employment environment with low unemployment rate.
Ø Good business environment attracts a large volume of foreign investment.
Ø Stable banking system that is adequately capitalized and highly resilience to risk.
Ø Government debt is well covered by the fiscal revenue.
Concerns
Ø Over-reliance on dairy and meat products in exports makes it vulnerable to price swings.
Ø Potential real estate bubble indicated by high housing prices.
Ø Heavy debt repayment pressure due to high level of external debt.
窥视卡
雷达卡
提升卡
置顶卡
沉默卡
喧嚣卡
变色卡
千斤顶
照妖镜
