NU Online News Service, Feb. 24, 1:08 p.m.EST

Moody’s Investor Services said it will take no immediate actionon New Zealand and Australia issuers as a result of theChristchurch earthquake on Feb. 21 but that losses could hinge onwhether this quake is considered a new event.

The “immediate consequences of the earthquake—and likely directconsequences over time to rated issuers—are clearly negative but donot pose immediate rating threats,” Moody’s said in a note.

The rating agency said that much of the damage will be coveredby the New Zealand Earthquake Commission to residential properties,but some insurers will still get hit hard since they are alreadydealing with the effects of an earthquake in the same area lastSeptember.

SLIDESHOWS: Day 1 Damage Photos and Day 2 Damage Photos

The earthquake commission provides coverage of up to $73,385(NZD $100,000) per building for residential owners who purchasefire insurance.

Losses may depend on whether this latest earthquake, consideredan aftershock of the September quake, will be considered a newevent.

“This would have clear, favorable implications for a companylike Suncorp, which will likely experience additional losses thatcould be reinsured in full if this latest earthquake is consideredto be the same event,” Moody’s said.

Australia’s Suncorp has also been hit hard with claims relatedto massive flooding in its home country.

If this quake is a separate event, Suncorp’s reinsurance willlimit the cost to about $45 million (NZD $60 million) and any lossabove that point will be covered by reinsurance, said Moody’s.

Related:More News & Analysis on the New ZealandEarthquake

QBE Insurance Group is exposed mostly to commercial rather thanresidential and the net loss from the September earthquake waswithin their 2010 allowance for natural disasters, Moody’s said.The insurer’s losses from this event and from flooding in Australiaare covered by its $1.5 billion allowance for 2011.

LATEST ON EARTHQUAKE

According to modeler Risk Management Solutions (RMS), rescuersin Christchurch, New Zealand, have confirmed 98 deaths and about225 people are still missing. Infrastructure, power andcommunication continue to be disrupted following the magnitude 6.3earthquake on Feb. 21 (Feb. 22 local time).

RMS said the damage appears to be more extensive than theSeptember quake. Christchurch’s central business district has anumber of collapsed and heavily damaged buildings. In the town ofLyttelton, closest to the earthquake’s epicenter, there is severedamage.

“Secondary impacts from the ground shaking are emergingthroughout the region, including cases of fire, landslides andlocalized liquefaction, as well as flooding,” said Emily Paterson,associate manager of cat response at RMS.

Liquefaction happens after an earthquake, when loose, sandy soilsubstantially loses strength and stiffness.

Catastrophe modeler AIR Worldwide said losses from the earthquake are expected to be between $3.5billion and $11.5 billion. The estimate includes damage toproperty, contents and direct business interruption losses.