Updated: Credit Rating downgrades: key points

Key highlights Fitch Ratings, followed by S&P, have downgraded NZ’s sovereign foreign currency rating to AA, from AA+. Market reaction has been predominantly in the foreign exchange market; muted interest rate reaction. The underlying fundamentals, particularly the influence of the European debt crisis, will soon reassert themselves.     Report prepared by: Nick Tuffley ASB Chief Economist Phone: +64 9 301 5659 Fax: +64 9 302 0992