The New Zealand dollar has plummeted at the news credit agency Standard & Poors has revised our credit rating from stable to negative.

The kiwi shed a full cent against the greenback on Monday afternoon, before recovering slightly to settle at around 77 and a half cents.

The revision implies a one in three chance New Zealand’s long-term foreign currency credit rating of AA plus will be downgraded.

The Government has played down the impact of the rating cut, which extends to six government-related entities.

Business commentator Brian Gaynor says the downgrade isn’t a surprise.

“You know these guys have to do their job, it was a bit of a surprise but it’s not a downgrade, it’s just a warning, or a credit watch.

"I think it’s just consistent with what’s happening in small economies around the world like Greece and Ireland.”

The Standard & Poor’s report points to New Zealand’s exposure to outside risks, and our open, largely undiversified economy as factors in the revision.

Federated Farmers economics spokesperson Philip York says the farming sector is in no position to make a difference.

“At the moment farmers just survive day to day and it can’t continue."

"The main industry that props the economy up is just unable to build up a kind of reserve to bail us out.

"People aren’t just going to keep lending to us forever, particularly when they see the discussions we’re having around foreign investment."

Mr York says the sale of our farm land is the only option to reduce primary sector debt.

"The only collateral we’ve got is our land, and foreigners can’t invest in it if some people have their way.

"So it’s all well and good to keep borrowing but if we’ve got no money and we can’t pay it back it’s an issue – we’ve got no equity.”