Tasman’s Financial Outlook Remains Positive

Independent credit rating agency Standard and Poor’s has again assessed the Tasman District Council as having a “positive outlook” and affirmed its AA- financial strength rating.

In its report, Standard and Poor’s said the positive outlook “reflects our view that Tasman District Council’s credit profile has structurally improved from previous years, supported by solid budgetary performance and a trend of declining debt”.

Council Corporate Services Manager Mike Drummond said Standard and Poor’s assessment was pleasing. The assessment also indicated that the Council’s rating could be raised further in the next 12 months if the strong financial performance continued. The outcome is testament to the Council’s adherence to a sometimes testing financial strategy.

“Without the Council’s adherence to the strategy the outcome may have been different. In preparing for next year’s Long Term Plan, it is likely the current financial strategy will be a continuing theme in our decision-making,” Mike said.

“S&P indicated that if the Waimea Community Dam project proceeds as currently proposed, the project shouldn’t reduce the likelihood of our credit rating being increased further in the near future.”

Mike said: “The rating agency has again recognised the Council’s sound management and strong budgetary flexibility, which sees us in good stead for the future.”

ENDS

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