OREANDA-NEWS. Fitch Ratings says that lower dairy prices are not yet a rating risk for the New Zealand sovereign, but a prolonged period of low dairy prices could have a more substantial impact. Australia's recent experience with a shock to terms of trade suggests there could be a direct impact on external accounts, while lower incomes could weigh on public finances and economic growth. Increased competitiveness in other export sector from a weaker New Zealand dollar could be an important mitigant.

The August edition of "APAC Sovereigns Chart of the Month" is available at www.fitchratings.com or by clicking on the link in this media release.