WELLINGTON, March 22 (Reuters) - Standard and Poor's rating agency affirmed its AA foreign currency long-term rating and AA+ local currency long-term rating for New Zealand on Tuesday.
The ratings agency said in a statement that the rating outlook remained stable, and that it expected New Zealand's fiscal performance to improve.
"The rating affirmation on New Zealand reflects the country's monetary and fiscal policy flexibility, economic resilience, and public policy stability," the agency said in a written statement.
However, it flagged some economic vulnerabilities in the country's high external debt and reliance on commodity income from dairy products.
"Moderating these strengths are New Zealand's very high external imbalances; its high household and agriculture sector debt; its dependence on commodity income; and risks to its financial system stability," the statement said.
