Prime Minister John Key says he cannot rule out a third downgrade of New Zealand by ratings agency Moody's.
He told Radio New Zealand yesterday there was no reason the agency would take a different view from Standard & Poor's and Fitch, which cut their ratings on this country last month, and that if he were a "betting man" he would have his money on a downgrade.
Key's warning came after Moody's downgraded Spain's rating by one notch and warned France that it could face the same fate.
Finance Minister Bill English said ratings agencies were on the move and were putting countries with high levels of debt under the microscope, Radio NZ reported.
Last Thursday, S&P cut Spain's long-term rating to AA- from AA with a negative outlook.