Coronavirus outbreak and slowing Chinese economy unlikely to weigh on New Zealand’s credit quality even as growth slows, S&P Global Ratings said in its latest credit review report on Thursday.
Additional points
Don’t expect slowing China economy from outbreak of new coronavirus to substantially weigh on NZ’s long-term growth prospects.
Expect New Zealand’s economic growth to slow to about 2.2% in fiscal 2020 with low interest rates, wage growth.
Positive outlook on long-term ratings on New Zealand reflects view of country’s declining exposure to risks related to its high external debt.
Kiwi’s recovery remains capped below 0.6300
Amid broad risk-aversion, reflective of fresh record lows in the US Treasury yields and over 1.5% drop in the S&P 500 futures, the recovery attempts in the NZD/USD pair remains capped by the 0.6300 level.
At the press time, the Kiwi trades modestly flat at 0.6292, having hit a new four-month low of 0.6284 in early Asia.
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