21 April 2016

Palmerston North City Council Retains AA Credit Rating

Palmerston North City Council has retained its AA long term credit rating from Standard and Poor’s.

Standard and Poor’s, which is considered one of the top international credit rating agencies, has affirmed the rating this week and notes the outlook for the Council remains stable.

Chief Financial Officer Grant Elliott says retaining a strong credit rating is important for the City.

“A good credit rating allows us to borrow money on more favourable terms, potentially making the cost of those loans cheaper which ultimately saves ratepayers’ money.”

Standard and Poor’s has praised the Council’s “strong financial management, economy and liquidity; and its low contingent liabilities”.

The Agency says the Council’s high debt burden partially offsets these strengths but notes that debt levels have been declining.

Standard and Poor’s says the strong performance has arisen in part because the Council’s “capital expenditure has consistently fallen below budget”.

Grant Elliott says Council is working on improving forward planning for capital works so they are on time and continue to be on budget.

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