AUCKLAND CITY COUNCIL

MEDIA RELEASE

6 September 2007

Financial track record rewarded

Standard and Poor’s announced yesterday that Auckland City Council’s long-term credit rating has been maintained at AA+ .

Standard and Poor’s says in a media release that the rating reflects the council’s track record of prudent financial management.

The release adds that Standard and Poor’s outlook for the council is stable. It states:

“The stable outlook reflects the current strength of Auckland City Council’s financial position, which allows it some flexibility to undertake additional borrowings without threatening the current rating.”

Mayor of Auckland city Dick Hubbardsays the continued AA+ rating is evidence that the council manages the city’s finances responsibly.

“We have budgeted for a large programme of capital works over the next 10 years as we get on with making Auckland an even better city.

“Borrowing is a way for future ratepayers, who benefit from the forward thinking and investment we are making today, to make a fairer contribution when it’s their turn.”

The council’s long-term plan forecasts that it will borrow approximately $1.5 billion over the next 10 years.

The Standard and Poor’s announcement follows last week’s Local Government Rates Inquiry report which supported greater use of debt to finance long-term assets.

Councillor Vern Walsh, chairperson of the council’s Finance and Corporate Business Committee says both Standard and Poor’s acknowledgement of council’s prudent financial management and the inquiry report support the policies the council has introduced over the past three years.

“We continue to look at every option to relieve the burden on ratepayers. Prudent debt as a means of funding major long term infrastructure projects is one funding option that we have taken advantage of.”

Standard and Poor’s is the world’s foremost provider of financial market intelligence including independent credit ratings.

Ends

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