Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


Wellington continues strong S&P credit rating streak


4 December 2017

Wellington continues strong S&P credit rating streak, looks to future

International credit rating agency Standard & Poor's has this week reaffirmed Wellington City Council’s strong credit rating, with an AA rating for longer-term and an A-1+ rating for short-term.

The agency cites the Council’s forward-looking and prudent financial management as key factors supporting its continued strong rating.

The Council’s consistently high ratings from Standard & Poor’s put it in a strong position to absorb sudden shocks to its budget, such as earthquake recovery, and to better plan for future developments.

“Wellington City Council’s very strong financial management, institutional settings and exceptional budgetary flexibility support its ratings,” Standard & Poor’s RatingsDirect Research Update says.

“If we were to raise our rating on the sovereign, then we would likely raise our ratings on Wellington City Council because the Council’s standalone credit profile is currently stronger than our foreign currency rating on the sovereign.”

The research update also refers to the Council’s strong liquidity.

Wellington Mayor Justin Lester says financial prudence and planning for the future underpin the way the Council does its business.

“This tells us we are using ratepayer funds responsibly, and that we are on track for the city’s future. It is a credit to our highly capable financial team,” says the Mayor.

City Council Chief Executive Kevin Lavery says the high credit rating stands the Council in good stead for coming long-term projects because it means the Council has access to cheaper credit and that eases pressure on rates.

“Over the next 25 years, Wellington City’s population will increase by up to 80,000 people. To meet the challenges arising from this growth we’ll need to invest in better public transport, housing, a more effective road network, our resilience, and in arts and culture.”

“The Mayor and Council have been clear that we must continue to make Wellington not only more liveable, but fair, equitable, productive and loveable!”

The Standard & Poor’s research update also says: “Given the current strength of Wellington City Council’s stand-alone credit profile, we consider downward pressure on the rating to be unlikely.”



© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Our Military Roles In Iraq & Afghanistan

The politics of the deployment extension have degenerated into a slanging match about whether the previous National government was right or wrong to make the initial commitment to Iraq – and whether the extension is a responsible thing given our joint training role in Iraq with Australia, or is hypocritical in the light of prior statements made by a previous Labour leader etc. etc. etc.

As usual, the benefit – or otherwise – of our military presence to the people on the receiving end has barely had a look in. More>>


Commissioner To Be Appointed: Govt To Dismiss Board Of Whitireia And WelTec

Education Minister Chris Hipkins has made a preliminary decision to appoint a Commissioner to Whitireia and WelTec to address the two polytechnics’ financial woes. More>>


Open Government Action Plan: Government To Proactively Release Cabinet Papers

The Cabinet papers will be released no later than 30 business days after a Cabinet decision. This process will be in place for Cabinet papers lodged from 1 January 2019... More>>


NZ Initiative: Evidence Of "Huge" Government Waste

It is not so much that spending is being literally wasted. Rather the best performing countries are achieving much better outcomes relative to their spending. More>>


Gordon Campbell: On The Ardern Pep Talk

The intolerance being shown as the coalition process unfolds in New Zealand betrays our depressing appetite for a tidily totalitarian style of government where everyone is expected to march in lockstep. More>>


Last Two: All Charter Schools To Join State System

The decisions on Tūranga Tangata Rite in Gisborne and Waatea School in Auckland mean that all 12 charter schools that applied to become designated character or state integrated schools have now been approved. More>>





InfoPages News Channels