Auckland City Council Media release 3 November 2008

Auckland City Council's credit rating announced

Standard and Poor's have confirmed the council's long-term credit rating at AA.

Standard and Poor's said that the council's rating reflected our strong cash-operating surplus and low-risk operations.

The stable outlook reflects the current strength of the council's financial position.

Councillor Douglas Armstrong, chairperson of the Finance and Strategy Committee says: "The affirmed rating is evidence that the council continues to manage the city's finances responsibly.

"We have noted Standard and Poor's comment on our projected level of debt-funded capital expenditure over the forecast period which could apply downward pressure on our rating.

"We have an obligation to our ratepayers across Auckland to maintain a strong financial position for the council while also achieving the right balance between rates levels for the ratepayers and continuing investment across the city."

"Through the current long-term planning process we are taking a hard look at the budget and the capital expenditure programme. We need to cut some of the things that are not absolutely essential to keep the budget affordable in this tough economic climate, and keep our financial position strong."

ENDS

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