Media Release 7 October, 2003

Christchurch City Council pleased to maintain AA+ credit rating

Today’s confirmation of Christchurch City Council’s creditworthiness by Standard and Poors is pleasing, says CCC finance director Bob Lineham.

The agency affirmed the council’s AA+ long-term rating and said the outlook was stable. The announcement followed a visit to CCC by Standard and Poors officers in August.

Christchurch City Council was rated AA by S&P from 1994 to 2000. IN 2001 it was lifted to AA+, the agency’s second-highest ranking. The rating is for the CCC operation and for its holding company, Christchurch City Holdings Ltd.

“I’m very pleased that once again S&P have put the council’s finances under scrutiny and given us a positive report,” Mr Lineham says. “It confirms that the council’s finances and its projections are on a sound basis and that they believe we’re capable of sustaining the AA+ rating into the future.

“The rating takes into account the council’s subsidiary companies because they form such a large part of the over-all group finances.”

In practical terms a high credit rating from S&P meant the council could borrow money at lower interest rates.

“This council has no current need to borrow, but in a year or two the capital programme will require borrowing and we’ll be able to do that very competitively because of this high rating,” Mr Lineham says.

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