Credit rating affirms Council’s prudent financial management
Western Bay of Plenty District Council continues to prove it can make sound financial decisions in tough economic times following its latest credit rating.
For the fifth consecutive year global credit agency, Standard & Poor’s (S&P) has awarded Council an AA rating. S&P gives out ratings based on factors such as finance, debt repayments and the economy.
“In trying economic times such as these, with high inflation levels and a cost-of-living crisis, it’s important to our community that we keep managing our budgets and our debt well,” says Council’s General Manager Corporate Services, Adele Henderson.
“It has been a challenging few years for our residents and Aotearoa as a whole, including navigating the post-COVID-19 economic period, so this rating is a great outcome and acknowledges our commitment to being fiscally prudent.”
S&P has described Council’s fiscal processes as “credible and well established,” and described the outlook on our long-term rating as “stable” due to expectations we will continue to manage our budgets and debt carefully. It has also positively acknowledged the Western Bay’s agricultural sector, which bolsters our economy.
In addition to this, S&P adds that, in its view, ‘Western Bay has been demonstrating stronger budgetary flexibility than its domestic and global peers’.
“It’s pleasing to read this, but we know we’ve got to keep working to carefully manage our finances to maintain this,” adds Adele.
“We have some big decisions coming up in the next 12 months, our Long Term Plan 2024-34 in particular, and will continue to do the best we can financially so we don’t place additional pressure on our community.”
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.
