AA- Credit Rating for QLDC Ahead of Challenging Ten Year Plan

31 January 2018. For immediate release

Fitch Ratings has today announced that Queenstown Lakes District Council (QLDC) will receive an ‘AA-‘ and ‘F1+’ long- and short-term local currency credit rating.

QLDC said the new rating shows a strong endorsement in the Council and the ambitious development plans for the district. The Council proactively requested a credit rating in order to secure more favourable borrowing terms.

QLDC General Manager Regulatory & Finance, Stewart Burns confirmed that the financial challenges the Council faces in the next ten years are considerably greater than ever before in the context of sustained population and visitor growth.

Queenstown Lakes District Mayor Jim Boult said, “The draft 2018-2028 Ten Year Plan will include a capital programme approximately three times larger than the previous Ten Year Plan. Investment is needed throughout the district in all aspects of council-operated facilities and services, including roading infrastructure, water supply, wastewater and storm water, and sport & recreation. In order to achieve this QLDC needs to be in a position to attract the best possible interest rates to minimise costs to the community.”

The thorough credit rating process took into account QLDC’s stable fiscal performance, favourable demographic profile and expectations for an increase in capital expenditure. The new rating demonstrates a clear confidence in the Council’s development programmes and strong performance.

Fitch also expects Queenstown Lakes District’s economy to maintain above national-average growth, driven by the increasing popularity as a tourist destination.

QLDC has invoked a number of tools to address the financial challenge of the coming 2018-2028 Ten Year Plan (due for consultation 12 March -13 April). These include land sales and increases to council revenue including rates.

“The new credit rating is an important factor in delivering an aspirational Ten Year Plan that is both fundable and deliverable. The Council is also engaging with Central Government to secure additional funding specifically to support tourism-related investment in the district,” said Mr Burns.

ENDS

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