‘AAA’ rating reflects faith in Powerco sale
New Plymouth District Council has welcomed today’s announcement from international ratings agency Standard and Poors
(S+P) increasing the council’s long-term credit rating to ‘AAA’ – a first for a local authority in New Zealand.
Mayor Peter Tennent says: “S+P attributes the ‘AAA’ rating to the council’s sale of its Powerco shareholding and this
shows that a world leader in international finance is confident that we made the right decision to sell.
“I am extremely proud to lead a council with the highest rating of any local authority in New Zealand. It is testament
to our policy of making decisions based purely on solid business rationale, while taking the best financial advice in
the country.”
S+P also backs the council’s view that diversification of its investment portfolio is the correct long-term approach for
the New Plymouth district, noting ‘credit strength is also enhanced by the diversification that the Powerco sale brings.
The income generated by a well-balanced investment portfolio is subject to less risk than the single income stream
earned from council’s investment in Powerco’.
About Standard & Poor’s
Standard & Poor's is one of the world’s pre-eminent providers of independent credit ratings, indices, risk evaluation, investment
research, data and valuations. A copy of its press release announcing the council’s ‘AAA’ rating is available at
www.standardandpoors.com.au. S+P’s full report on the ‘AAA’ rating will be available on the council’s website,
www.newplymouthnz.com, in the coming days.