Moody's Investors Service says that New Zealand's Aaa rating and stable outlook are supported by the sovereign's very high economic resilience, and a strong fiscal position compared to peers. Combined with effective institutions and policies, these credit strengths mitigate New Zealand's vulnerability to shifts in external funding or a turn in the housing market..

High income levels, robust population growth and continued strong Asian demand for New Zealand's products and services, including dairy, tourism and education, support the country's very high economic strength.

As such, Moody's expects real GDP growth of around 3.0% through 2017 and 2018, above the Aaa median of 2.0%.

Moody's conclusions were contained in its just-released annual credit analysis, "Government of New Zealand -- Aaa Stable".

This analysis elaborates on New Zealand's credit profile in terms of Economic Strength, Very High (-); Institutional Strength, Very High (+); Fiscal Strength, Very High (+), and Susceptibility to Event Risk, Low (+), which are the four main analytic factors in Moody's Sovereign Bond Rating Methodology. It does not constitute a rating action.

Longer term, New Zealand's potential GDP growth is higher than many Aaa-rated sovereigns. In particular, it benefits from a more favourable demographic profile than in most of its peers.