21 August 2012

Council Credit Rating ‘A Good Result’

International credit rating agency Standard & Poor’s has reaffirmed Hutt City Council’s AA “stable” credit rating.

The credit agency described Hutt City’s financial management as excellent.

“We consider Hutt's budgetary performance to be very strong,” the agency says. “We expect Hutt's operating surpluses to continue to improve over the outlook period.”

Standard & Poor’s also noted Hutt City has implemented measures to control growth in operating expenditure and reduce its debt relative to its peers – Dunedin City Council, Greater Wellington Regional Council and Wellington City.

The Mayor of Hutt City, Ray Wallace, described the new credit rating as a good result.

“We are taking a positive approach to ensuring our ratepayers’ money is well managed for the benefit of the city,” he says. “The rating reflects that view.”

Chair of the Council’s Finance Committee, Deputy Mayor David Bassett, said the forecast reduction in council’s debt worked in favour of the council’s positive credit rating.

“The confidence expressed in council by the agency reinforces the sound decisions made by council in setting an average rate that is one of the lowest in New Zealand.

“The latest credit rating means Hutt City is one of the highest credit-worthy councils in the country,” he says.

Cr Bassett says council is working off a solid base as it plans for the future.

ENDS

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