Nelson City Council credit rating raised to 'AA' on consistently strong financial performance

24 November 2015
Credit rating agency, Standard and Poor's, has just released its updated long-term credit rating for the Nelson City Council, with a rise from 'AA-' to 'AA'.

The credit rating upgrade reflects Standard and Poor’s view of strong financial management from Council, with the research report highlighting financial prudence and enhanced accountability.

“We consider Nelson’s financial management to be strong."

“The ratings reflect our view of New Zealand's extremely predictable and supportive institutional framework, in addition to Nelson's very strong budgetary flexibility, strong financial management and liquidity, and low contingent liabilities. Offsetting these strengths are the council's average budgetary performance and economy, and moderate debt burden.”

Council’s Chair of Governance Committee, Ian Barker, says the rise in credit rating is evidence of Council’s forward-thinking approach.

“The report highlighted our strong position as set out in the Long Term Plan 2015-2025, where we have balanced investment needed to make Nelson an even better place, with affordability for ratepayers.”

“We have cut our cloth differently to ensure our capital programme is forward-thinking yet financially prudent.”

Council Group Manager Corporate Services Nikki Harrison says the upgraded credit rating is very pleasing and will lead to lower interest rates for Council.

ENDS

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