Nelson City Council retains AA/A-1+ credit rating, noting prudent financial management04/02/2022 11:05am
Credit rating agency S&P Global has affirmed Nelson City Council’s AA long-term and A-1 short-term credit rating with a stable outlook, due in part to prudent financial management as New Zealand recovers from a recession-induced by COVID-19.
Standard and Poor’s report says they expect the next few years to see Council recording moderate after-capital-account deficits, with an uptick on capital investment in core infrastructure and city centre revitalisation projects.
The report notes “Nelson's robust financial management”, and expects capital expenditure to be around $58 million a year, up from pre-pandemic levels of about $30 million to $35 million, with higher capital spending budgeted for water infrastructure upgrades and a new city centre library.
Nelson Deputy Mayor Judene Edgar says long-term, careful financial management put Council in a strong position in the later stages of the COVID-19 pandemic and helped to maintain the AA credit rating.
“We can now invest further in our city and core infrastructure, bringing stimulus to our local economy and ensuring our region improves its resilience to the impacts of climate change, as well as providing more capacity for affordable housing. Our fiscal processes are described by the agency as robust, and it’s this thorough management of expenditure that has Council retaining its strong financial position.”