Auckland City keeps AA+ credit rating

Auckland City was informed yesterday that Standard and Poor’s have maintained the council’s long-term credit rating at AA+.

Standard and Poor’s said that Auckland City’s increase in debt levels is expected to remain consistent with a AA+ rating.

Councillor Vern Walsh, chair of Auckland City’s Finance and Corporate Business Committee said the affirmed rating is evidence that the council continues to manage the city’s finances responsibly.

“We have budgeted for a large programme of capital works in the city over the next 10 years that will benefit Aucklanders now, and help create a great city for the future,” he said.

“We look at every option to relieve the burden on ratepayers. One funding option that we have taken advantage of as part of our long-term budget is borrowing,” he said.

“Borrowing now to fund much-needed infrastructure means that the burden of growth and development does not rest solely with the ratepayers of today. It allows us to spread the investment in the city over Aucklanders who will also benefit from it in the future.”

“This is the most responsible way of funding the priorities for the city while helping us manage our rates increases.”

Auckland City’s long-term plan published in July this year forecasts that the council will borrow approximately $1.5 billion over the next 10 years.

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