The Government isn't going to change its economic policies because two international credit rating agencies have downgraded New Zealand, Finance Minister Bill English says.
Fitch and Standard & Poor's on Friday announced downgrades from AA+ to AA, mainly because of concerns that New Zealand's external debt was going to worsen.
The third big agency, Moody's, has kept New Zealand on the highest possible AAA rating.
Mr English said the agencies were now much more sensitive about debt because of international events.
"The global market goalposts have shifted while our financial situation has significantly improved," he told reporters.
"Every country with high debt levels is now under the microscope."
Mr English said the government would continue with its policies to encourage household savings and control government spending.
"Budget 2012 will continue with the plans we've laid out," he said.
"Today's events show the importance of that."
Mr English said the banks were better placed to deal with a crisis now than they were in 2008.
"The New Zealand ship is more seaworthy than it was three years ago, but international waters are more choppy," he said.
Mr English denied the economy was weakening and said the government remained confident about its growth forecasts.
He says it is difficult to predict what impact the downgrades will have on interest rates.
It is possible they could be pushed up, but they are at a 40-year low.
Asked whether the downgrades were evidence of political failure on his government's part, he said that wasn't the case.
"It's a lot more to do with the way the world has changed," he said.
NZN