6 Sep 2010

No downgrade of NZ rating after quake - agency

2:02 pm on 6 September 2010

Standard Poors says it has no immediate plans to downgrade New Zealand's rating following Saturday's earthquake.

The ratings agency says the Government's strong financial position should not be affected by reconstruction costs from the quake.

Treasury has estimated the cost of the cleanup at $2 billion.

The interest rate on three and 10-year Government bonds rose by 0.10 of a percentage point on Monday morning. The New Zealand dollar fell 0.3 cents to 71.8 US cents.

ANZ Bank says investors are concerned about increased Government borrowing needed for reconstruction.

Bond rates have been rising since the Government's $1.8 billion payout for South Canterbury Finance investors.