31 August 2017

Porirua City Council has again received a gold star by Standard & Poor’s with an AA credit rating.

Mayor Mike Tana says that maintaining the city’s high credit rating is excellent news.

“Porirua continues to maintain the highest credit rating currently achieved by local authorities,” Mayor Tana says.

“The Standard and Poor’s report, released this week, shows that the current Council is continuing to manage its finances extremely well. It’s gratifying to have this independent view of the Council’s financial position.”

The report noted the excellent rating was due to the city’s sound financial management, institutional settings and high budgetary flexibility.

“We expect Porirua’s debt burden to remain moderate as the Council maintains its strong operating position and high liquidity coverage compared with its peers,” the Standard & Poor’s report says.

“The stable outlook reflects our expectation that Porirua’s financial management will deliver its major infrastructure commitments within budget,” the report went on to say.

“Porirua’s financial management is experienced and conservative. The Council is able to adopt budgets and long-term plans without delay, and it remains focused on being financially disciplined in its approach to borrowing and insurance policies. We consider its debt and liquidity policies to be prudent.”

Council Chief Executive Wendy Walker welcomes the Standard & Poor’s AA rating.

“It’s pleasing to know that a sustained effort by elected members and the Executive Leadership Team to keep the Council’s books in close order continues to bear fruit.”

Ms Walker also thanked residents who provided feedback through this year’s Long-term Plan process.

“We received constructive input from residents and that also helps us shape the city’s budget and empathise with community expectations and aspirations. Generally, Porirua people understand the pressures on the Council to restrain spending without stifling the city’s growth potential – and their guidance on how to get the balance right is invaluable.”

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