11 December 2008
N E W S R E L E A S E
Council Delighted as AAA Credit Rating is Confirmed
New Plymouth District Council is delighted to receive re-confirmation of its AAA credit rating from international rating
agency Standard & Poor’s (S).
Mayor Peter Tennent says: “Triple-A is as good as it gets and for Standard & Poor’s to rate us so highly for the fifth successive year is simply fantastic news.
“It also represents continuing vindication of our non-political and business-focused approach to finance and
investments.”
NPDC is the only council in New Zealand to be rated AAA long term and A-1+ short term with a stable outlook – the
highest ratings possible for any organisation.
“A triple-A long term rating is harder for a council to get in New Zealand in comparison to councils in some other
countries,” says Chief Executive Barbara McKerrow.
“Overseas governments can act as a financial back-stop for any of their councils that get in trouble, but that isn’t the
case in New Zealand where councils have to stand on their own two feet.
“So S’s rating indicates just how robust NPDC’s approach is to finance and investment.”
S noted the council’s Perpetual Investment Fund (PIF) continues to play a key role in bolstering NPDC’s credit quality,
adding that the fund has performed well in a difficult 2008 investment environment, significantly enhancing the
council’s liquidity and fiscal flexibility.
Attached to this release is a copy of S’s news release, in which it notes the council’s balance sheet remains very strong compared to its peers, as well as a
research update.
-ends-