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24 September 2001 |
Council Credit Rating Upgraded
The upgraded credit rating of the Christchurch City Council to AA+ today reflects the soundness of the Council’s finances and the prudent management of its financial resources, says the Council’s Director of Finance, Bob Lineham.
Standard and Poor’s today announced that it had upgraded the credit rating of the Council and Christchurch City Holdings Ltd to AA+.
The Council has enjoyed a credit rating of AA since it was first rated in 1993. Mr Lineham said: “It should be very reassuring for the public to hear from an international and independent source with the status of Standard and Poor’s that the Council’s finances are in good heart.” Mr Lineham said the Standard and Poor’s decision was influenced by the Council’s decision over the use of the Orion money. After public consultation earlier this year, the Council decided that the proceeds from the sale of the Orion North Island gas networks should be applied to debt reduction and investment of the capital in a long-term endowment fund. “The review by Standard and Poor’s has taken into account the long-term financial plans of the Council and concluded that these are realistic in terms of the forecast revenues and a low level of debt,” he said. This credit upgrade makes the Council the highest rated local authority in New Zealand.
The only grading above AA+ is triple A and there are only three organisations in this category and one is the New Zealand Government. Further information: Bob Lineham, Director of Finance: 941 8411.