Waimakariri District Council maintains Standard and Poor’s AA/A-1+ credit rating

Published: 30-Apr-2019

Credit rating agency, Standard and Poor's, has affirmed its AA long-term and A-1+ short-term credit rating with a negative outlook for Waimakariri District Council.

The AA rating equates the Council with New Zealand’s national credit rating – the ‘sovereign rating’. Standard and Poor’s does not rate any individual Council higher than the sovereign rating.

The outlook is based on Standard and Poor’s view that Council’s capital works programme is significant, which can cause an increase of debt in the short term (approx. two years).

The significant work programme includes necessary infrastructure to cater for Waimakariri’s growing needs and population.

Current and future work includes delivering the Kaiapoi Regeneration area programme (this includes a dog park, BMX track, softball diamond, walking and cycling paths and more),  upgrading sewer, water and drainage assets identified as having flooding risks, building a new multi-use sports stadium and preparing for higher levels of water quality being signalled by central government.

Standard and Poor’s noted that the Council has strong financial management and budget flexibility. The consistency of Council’s financial performance, and how it is rated, assists significantly when it comes to future borrowing.
Waimakariri District Council has a number of internally-imposed safeguards to ensure prudent management of debt.

The Council’s internal policies place limits that are more stringent than what the Local Government Funding Agency (the agency which funds Council activity nationwide) allows and ensures our Council has sufficient headroom within its borrowing limits to endure another adverse event such as a significant earthquake.