Council’s financial outlook remains stable as ‘AA/A-1+’ credit rating affirmed

06/12/2019 9:20am

Credit rating agency, Standard and Poor's, has affirmed its AA long-term and A-1+ short-term credit rating with a stable outlook for the Nelson City Council.

The stable credit rating outlook reflects Standard and Poor’s expectation that although Council will record small after-capital-account deficits during the next few years as capital expenditure rises, Nelson's debt burden should remain moderate compared with its peers.

According to the Standard and Poor’s credit rating agency, “Nelson’s robust financial management, strong liquidity and moderate debt burden continue to be supportive of its credit profile.”

Council’s Chair of Governance and Finance Committee, Councillor Rachel Sanson, says the stable credit rating is evidence of Council’s strong financial practices and forward-thinking approach, as the new Council continues the work to implement the Long Term Plan 2018-28.

"It’s great to see Council maintaining a stable outlook for its programme of works over the coming years.

“We can be proud of our high degree of fiscal flexibility and our ability to continue investing in core infrastructure,” she says.