AA Positive rating for Council’s financial management

Marlborough District Council’s strong financial management has been confirmed by rating agency S&P Global Ratings, with Council retaining its “AA Positive” long term credit rating.

In February this year, Council was one of just seven New Zealand local councils to improve its rating from having a stable to positive outlook following a similar action by S&P on the New Zealand Government.

The S&P assessment takes into account the financial position of the Council Group, which includes MDC Holdings Ltd, Port Marlborough NZ Ltd and Marlborough Airport Ltd.

S&P said the Council’s “robust financial management and moderate debt burden continues to support its ratings.

It noted the Council’s long term plan calls for higher levels of capital expenditure over the next few years, “as Council continues to renew and upgrade it infrastructure.”

“Although this will result in a higher after-capital deficit, we believe Marlborough’s robust financial management and the country’s excellent institutional settings will enable the council to keep its debt burden moderate relative to domestic peers.”

“Marlborough's fiscal processes are credible and well established…the council's treasury management policies set prudent limits on external borrowing and interest rate risk.”

Marlborough Mayor John Leggett welcomed the report.

“S&P has recognised our robust financial management and governance, good fiscal processes and moderate level of debt.

“S&P credit ratings are based on objective analysis and independent assessment, so Marlborough’s residents and ratepayers can have confidence that the Council’s books are in very good shape,” he said.

ENDS

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