NZ banks brace for the worst of COVID-19

Wellington: Global credit agency S&P Global Ratings says it will get tougher for New Zealand’s major banks but they have the financial strength to withstand the expected worst effects of the COVID-19 pandemic. The agency recently reaffirmed the banks’ ratings but downgraded their outlook to negative, raising the risks of a credit downgrade.

It said its negative view of the economy could be temporary, but there was a one-inthree chance the downturn would be more severe and prolonged, which would pressure the banks.