WELLINGTON, Jan. 30 (Xinhua) -- New Zealand Finance Minister Grant Robertson on Tuesday welcomed news that Standard & Poor's has affirmed its "AA/A-1+" foreign currency and "AA+/A-1+" local currency sovereign credit ratings on New Zealand.

The rating outlook also remains stable.

"This decision effectively gives a tick to the policy agenda outlined in the government's Budget Policy Statement (BPS) in December, which confirmed our commitment to the Budget Responsibility Rules, together with the fiscal forecasts presented in the Half Year Economic and Fiscal Update," Robertson said in a statement.

S&P notes that the stable outlook reflects its expectation that New Zealand's fiscal performance will remain sound, with a slowly improving net debt ratio over the next few years, Robertson said.

They also say the composition of growth in New Zealand is likely to change in light of the new government's policies. On residential housing, while the property market is softening, S&P expects residential investment to remain solid, supported by policies like KiwiBuild, which will help alleviate housing supply pressures.

S&P continues to warn that New Zealand's private international debt poses the biggest threat to the economy. However, they say New Zealand's current fiscal settings provide the government with flexibility to help offset risks associated with the high levels of external private debt.

"The government's economic strategy is to drive growth towards the productive side of the economy, boost regional growth, lift research and development, and boost exports," Robertson said.

The attempt aims to help New Zealand reduce these external risks, while also putting growth on a more sustainable and inclusive footing, he said.