S&P Global affirms Horowhenua Council’s credit ratiing
Horowhenua District Council has retained its A+ rating for long-term foreign currency and local currency.
S&P Global is an internationally recognised organisation, and the credit rating process takes into account whether the organisation can service its debt.
The report is compiled following an assessment of Council’s financial policies and practices, budgetary performance, liquidity, debt burden and revenue drivers.
The analysis includes a review of independent media coverage of Council.
“It is reassuring to have the ratings affirmed as it affects Council’s ability to secure lower interest rates thereby making significant savings,” says Horowhenua District Council Chief Financial Officer, Doug Law.
The report states that a supportive institutional framework, strong management, and broadly supportive economy underpin Council’s creditworthiness.
Horowhenua District Council Chief Executive, David Clapperton says the independent analysis by S&P Global should provide ratepayers with reassurance that Council is financially well-managed and on the right track.
The report’s overview says Council’s institutional settings, broadly supportive district economy, and management continues to support its ratings.
It states Council’s management remains focused on delivering the Council’s large capital spending programme. Capital spending will remain high, leading to after-capital deficits, but a sustainable debt burden, while liquidity improved and is ‘broadly stable’.
The report highlights the economic growth that is now occurring in the district.
It states the district is set to transform from a period of stagnation; economic growth rose to 3.5% in 2016 compared to average growth of 0.5% during the past ten years. And, that the Wellington Northern Corridor project may lead to Horowhenua being more desirable and productive, and provide opportunities for population and industry growth.