S&P Global Ratings reaffirmed New Zealand’s AA+/A-1+ foreign currency and AAA/A-1+ local currency sovereign credit ratings on Wednesday, maintaining a stable outlook despite signs of economic weakness.
Economy shows signs of contraction
The decision comes even as New Zealand’s economy continues to struggle, with Gross Domestic Product (GDP) declining by 1.1% over the 12 months to June 2025. The data also showed that the economy has contracted in three of the last five quarters, reflecting subdued domestic demand and external headwinds.
Market reaction
Following the announcement, the NZD/USD pair edged slightly higher, gaining 0.10% on the day to trade around 0.5720 at the time of writing.
