Standard & Poor's Monday shifted its outlook on New Zealand's foreign currency credit rating to negative from stable, warning on the country's dependence on offshore markets to fund its banking network and putting a spotlight on the its tepid economic recovery.

The nation's all important local currency rating was untouched, and given the sovereign itself doesn't currently borrow offshore analysts said the move by S&P will soon fade from the market's view. But the ratings agency's decision is a reminder of New Zealand's lackluster growth, hindered ...