Council credit rating maintained
Thursday 22 December 2011
Council credit rating maintained
International credit rating agency Standard and
Poor's has reaffirmed
Christchurch City Council's AA
financial rating.
The rating keeps Christchurch City
Council among the highest-rated local
authorities in New
Zealand. The other AA-rated local authorities
are
Auckland Council, Wellington City Council, Greater
Wellington Regional
Council, New Plymouth District
Council and Hutt City Council.
Standard and Poor's says
that the Council remains on negative outlook
because of
the lack of insurance available to cover Council assets,
a
negative global outlook and the agency's view that
there is uncertainty
in Christchurch's local economy,
around the speed with which the rebuild
can progress and
the exact extent of Central Government contribution
to
the rebuild.
The agency also praised the Council's
financial management as a "very
positive rating factor".
It says: "...the Council has demonstrated
significant
responsiveness to events. This includes
implementing
recovery efforts and back-up plans, and a
five-year earthquake rates
levy to support the Council's
weaker budgetary position.".
General Manager Corporate
Services Paul Anderson says this is a good
result for the
city. The outcome is a direct result of the
Council's
strong financial management and Government's
strong support to date.
"The Council's involvement in the
newly established Local Government
Funding Agency was
also viewed positively by the ratings agency, which
it
expected would improve the city's liquidity.
"This is a
good outcome given the events of the past year. The
Council
continues to keep tight control on finances as
the city works toward
recovery."
Christchurch Mayor Bob
Parker says, "A positive affirmation of
Council
management's approach to handling the
extraordinary financial pressures
and uncertainties
around us at this testing time is reassuring
for
ratepayers. My congratulations to the CEO and his
finance team.
"It is also pleasing to note that the
Council's leadership role in
setting up the Local
Government Funding Authority is already starting
to
produce a positive
effect."