Christchurch City Council pleased to maintain AA+ credit rating
7 October 2003
Today’s confirmation of Christchurch City Council’s creditworthiness
by Standard and Poors is pleasing, says CCC finance director Bob Lineham.
The agency affirmed the council’s AA+ long-term rating and said the
outlook was stable. The announcement followed a visit to CCC by Standard
and Poors officers in August.
Christchurch City Council was rated AA by S&P from 1994 to 2000. IN
2001 it was lifted to AA+, the agency’s second-highest ranking. The
rating is for the CCC operation and for its holding company, Christchurch
City Holdings Ltd.
“
I’m very pleased that once again S&P have put the council’s
finances under scrutiny and given us a positive report,” Mr Lineham
says. “It confirms that the council’s finances and its projections
are on a sound basis and that they believe we’re capable of sustaining
the AA+ rating into the future.
“The rating takes into account the council’s subsidiary companies
because they form such a large part of the over-all group finances.”
In practical terms a high credit rating from S&P meant the council
could borrow money at lower interest rates.
“This council has no current need to borrow, but in a year or two
the capital programme will require borrowing and we’ll be able to
do that very competitively because of this high rating,” Mr Lineham
says.
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