International credit rating agency, Standard and Poor’s (S&P) has reissued Greater Wellington’s ‘AA+’ long-term issuer and local currency and ‘A-1+’ short-term issuer credit ratings with a stable outlook for the future.
“In 2022, Greater Wellington was among six councils that had achieved and maintained these ratings, we are now among five,” says Greater Wellington Council Chair Daran Ponter.
“This is a renewed vote of confidence in Greater Wellington and our efforts to deliver value for money to the region’s ratepayers,” says Cr Ponter.
“It’s also put us in a strong position as we prepare to navigate significant costs incurred from transformational changes that will impact us as a council, from the Resource Management Act reform and a review into the future of local government among others.”
S&P’s affirmation and report commented that they “consider Greater Wellington’s management to be very strong, compared with its global and domestic peers”.
“Councillors and officers will continue to deliver a high standard of financial management and work with the Government and the Local Government Funding Agency to secure better funding arrangements on the back of both this rating and outlook,” says Cr Ponter.
Greater Wellington’s rating is not just a reflection on standard of financial management but a consideration of other factors, such as its level of debt, budgetary performance and liquidity.
Having a strong rating also enables the Local Government Funding Agency, the major funder of councils, to access a wider pool of investors and potentially lower borrowing margins to benefit all New Zealand councils.
