High Financial Ratings Confirmed for NPDC

The strong financial management of New Plymouth District Council has been highlighted by finance credit agency Standard and Poor’s in its latest ratings for the Council.

NPDC’s current rating of ‘AA/A-1’ has just been reconfirmed by the agency. This is the highest rating that can be achieved by a local government body in New Zealand.

The ‘AA’ is for long-term foreign currency and local currency, and ‘A-1+’ for short-term issuer credit ratings on NPDC. Standard and Poor’s says the Council’s outlook remains stable.

In its report, the agency says the ratings reflect the extremely predictable and supportive institutional framework available to local and regional councils within New Zealand.

It added that the Council’s experienced and stable management was focused on prudent financial management and had contributed to the NPDC’s strong financial position.

“Standard and Poor’s made particular mention of the Council’s strong financial management and economy, very strong budgetary flexibility and budgetary performance, our exceptional liquidity, moderate debt burden and very low contingent liabilities,” says Chief Financial Officer Alan Bird.

The agency said the ‘stable’ rating reflected their expectations that NPDC would continue to prudently manage its financial metrics in line with their forecasts over the next two years, with financial management remaining strong, liquidity remaining at exceptional levels, and debt broadly stable over the next two years.

Mr Bird says NPDC has always achieved the highest financial ratings possible from Standard and Poor’s.

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