Credit rating confirms Councils strong financial position

Western Bay of Plenty District Council continues to hold its strong AA credit rating with global credit agency, Standard & Poor’s (S&P).

For the fourth year running Council has maintained its AA credit rating, showing our community and future lenders, that our books are in order and our debt is well managed.

In its report S&P Global noted that the rating is supported by ‘exceptional’ liquidity and strong budgetary performance. The report also compares Western Bay favourably with other local governments noting our ‘strong flexibility compared with its domestic peers’.

Council’s AA rating gives assurance to lenders that any debt carried comes with a very low credit risk. We also have a strong capacity to repay any future debt needed for significant infrastructure or unplanned events.

The score also allows Council to access lower interest rates from the Local Government Funding Agency.

Council’s General Manager Corporate Services, Adele Henderson says a strong and stable credit rating, shows we’re in a great position.

"It assures our community that our spending is being carefully monitored and our debt is in check.”

Despite a few years of big infrastructure spending in the pipeline, including a planned investment of $172 million for 2023–2025, S&P say our future financial outlook is strong.

S&P’s report noted Council’s economic forecast will actually ‘benefit from infrastructure investment in Ōmokoroa, and the development of Rangiuru Business Park, which aims to create 4000 jobs during its construction phase’.

The performance of Western Bay's economy has also contributed to the rating, with the report stating our economy ‘has been resilient throughout the pandemic, bolstered by strong performance in its agricultural sector, and relatively lower exposure to the tourism and education sectors’.

S&P is a global credit agency that gives out ratings based on factors such as finance, debt repayments and the economy. Their independent credit ratings indicate an organisation’s ability to take on and repay debt in the future.