SYDNEY (Reuters) - New Zealand's sovereign credit rating can absorb more fiscal spending even as it delays a return to budget surpluses, S&P Global said on Wednesday.
In a statement on the Labour government's mid-year economic update, S&P said higher government spending and weaker economic conditions were weighing on fiscal outcomes.
"However, we believe this can be accommodated within the current rating and net debt threshold," the agency said.
"We expect these factors will further delay the forecast return to general government surplus until fiscal 2024, noting that this was delayed by a year to fiscal 2023 in the 2019-2020 budget released in May."
S&P has a positive outlook on New Zealand's AA rating.
(Reporting by Wayne Cole; Editing by Himani Sarkar)
