October 2017

Auckland Council’s credit ratings reaffirmed by Standard and Poor’s and Moody’s

Auckland Council’s strong credit ratings have been reaffirmed by international agencies Standard & Poor’s and Moody’s Investor Service.

Both Standard & Poor’s and Moody’s have reaffirmed the council’s credit ratings as AA and Aa2 respectively on a “stable” outlook.

Group Chief Financial Officer Sue Tindal says that the reaffirmation confirms the council’s solid financial footing.

“This represents the council’s ongoing commitment to meet its financial obligations and prudently manage its financial position through a period of unprecedented growth for the city and demand on infrastructure.”

Mayor Phil Goff says, “Auckland enjoys one of the highest credit ratings in the country, after Government. Retaining that with a stable outlook is a reflection of the council’s competent economic management.

“However, record population growth has put huge pressure for higher investment into transport, housing and water infrastructure. Borrowing has to be kept within strict debt to revenue ratios which means we now have to work with Government to find alternative ways of paying for our infrastructure,” says Mayor Goff.

Last week Auckland Council's Governing Body formally adopted Auckland Council’s Group 2016/2017 Annual Report for the year ended 30 June 2017.

The report showed that net debt (after cash on hand) was $7.969 billion, an increase of $486 million from the prior year; however, $467 million lower than budget. Total assets amounted to $47.4 billion, an increase of $2.7 billion from the prior year.

Auckland’s population growth of almost 900 new people per week has resulted in the need for a large capital investment programme.

As a result, $1.7 billion has being spent in capital expenditure on infrastructure including public transport, roads, footpaths, parks, water supply and wastewater treatment in the 2016/2017 financial year - one the biggest investment periods in Auckland’s history.

ENDS

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