11/11/2013 12:00:00 a.m.
11 November 2013
Mayor Annette Main today welcomed the announcement by global rating agency Standard and Poor’s of an AA- long-term credit rating for Wanganui District Council.
“It is a vote of confidence in the Council’s prudent financial management, budget flexibility and transparency and will give additional confidence to Wanganui District Council’s bond holders,” Mayor Main said.
“The favourable rating will mean more investor interest, leading to lower interest costs to Council.”
AA- is Standard and Poor’s fourth highest credit rating and is the same as the rating of New Zealand’s major banks.
Standard and Poor’s has also given the Council a short-term issue rating of A-1+. This is the highest short-term credit rating, indicating the Council’s very strong capacity to meets its short-term obligations.
“Once the new wastewater treatment plant is built, the Council will be focusing on reducing its overall debt levels,” Mayor Main said.
“Standard and Poor’s has advised that its outlook for the Council is stable. This means it expects we will continue to operate within our forecasts, with the credit rating expected to remain in place for the next two years.”
Standard and Poor’s announced the Council’s credit rating to the financial markets today.