11 December 2008

N E W S R E L E A S E

Council Delighted as AAA Credit Rating is Confirmed

New Plymouth District Council is delighted to receive re-confirmation of its AAA credit rating from international rating agency Standard & Poor’s (S&P).

Mayor Peter Tennent says: “Triple-A is as good as it gets and for Standard & Poor’s to rate us so highly for the fifth successive year is simply fantastic news.

“It also represents continuing vindication of our non-political and business-focused approach to finance and investments.”

NPDC is the only council in New Zealand to be rated AAA long term and A-1+ short term with a stable outlook – the highest ratings possible for any organisation.

“A triple-A long term rating is harder for a council to get in New Zealand in comparison to councils in some other countries,” says Chief Executive Barbara McKerrow.

“Overseas governments can act as a financial back-stop for any of their councils that get in trouble, but that isn’t the case in New Zealand where councils have to stand on their own two feet.

“So S&P’s rating indicates just how robust NPDC’s approach is to finance and investment.”

S&P noted the council’s Perpetual Investment Fund (PIF) continues to play a key role in bolstering NPDC’s credit quality, adding that the fund has performed well in a difficult 2008 investment environment, significantly enhancing the council’s liquidity and fiscal flexibility.

Attached to this release is a copy of S&P’s news release, in which it notes the council’s balance sheet remains very strong compared to its peers, as well as a research update.

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