High rating for District Council financial management

Another high rating for Marlborough District Council financial management

The sound financial management of the Marlborough District Council has been confirmed by the from rating agency Standard and Poor’s which has awarded the Council an “AA Stable” long term credit rating for the second year running.

The assessment takes into account the total debt of the whole Council Group, including MDC Holdings Ltd, Port Marlborough NZ Ltd and Marlborough Airport Ltd.

No local authority in New Zealand has a rating higher than Marlborough and it is only one step below the AA+ awarded to the New Zealand Government.

Marlborough Mayor John Leggett says this is an extremely good report, even stronger than the previous year, and particularly reassuring given that the district had to withstand the impact of a significant earthquake.

“Credit ratings are based on objective analyses and independent assessment so this result means ratepayers can have utmost confidence that Council’s financial management is in very good shape,” he said.

Mr Leggett said the report also makes it clear to ratepayers that Council’s debt levels have remained moderate compared with other councils.

Standard and Poor’s say Council’s experienced and stable management team has ensured the Council has forward-looking and prudent financial management, and that had contributed to the Council’s strong financial position.

“The Council is able to adopt budgets and long-term plans without delay, and it remains focused on being financially disciplined with its approach to borrowing and insurance policies. We consider its debt and liquidity policies to be prudent, as shown in its high liquidity coverage and moderate debt levels,” the report says.

The rating agency also noted that, while the Kaikoura earthquake had caused significant damage to roads, river protection, and three water supplies, the Council was prepared with comprehensive insurance policies in place, minimising the financial impact on its balance sheet.

ENDS.

Record. 1798579

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