Published: 30 August 2022
International credit-rating agency Standard & Poor’s has reaffirmed Hutt City Council’s AA long-term credit rating with a stable outlook. An AA credit rating reduces the cost of borrowings by up to 0.30% compared to other borrowers.
Standard & Poor’s report says:
- Council has a supportive institutional framework, experienced management team, and strong economic profile which underpin creditworthiness.
- Council adopts budgets and long-term plans without delay, and it remains focused on being financially disciplined in its approach to borrowing and insurance policies. Standard and Poor’s considers Council’s debt and liquidity policies to be prudent.
- Council’s large capital programme reflects its decision to address previous backlogs and underspending on essential infrastructure.
- The large capital programme will lead to rising debt levels. Decisions to increase property rates and contributions from developers support financial sustainability and indicates the Council is aware of the financial pressures its large capital programme will bring.
Lower Hutt Mayor Campbell Barry says this rating reflects the strong combination of good financial management and getting the basics right.
"Our goal is to create a city that thrives and investing in our core infrastructure and getting the basics right is a critical part of that.
"This credit rating demonstrates that it is possible to undertake an ambitious infrastructure programme while remaining fiscally sustainable," Campbell Barry says.
Council Chief Executive Jo Miller says that the rating is an endorsement of Council’s strong financial management and strategy.
"Having our top AA rating reaffirmed by an international rating agency reinforces the financial approach we have taken - which is ultimately allowing us to make progress on our city’s most significant challenges, in a measured and financially responsible way.
"It is also a reflection of the significant focus we have put on financial sustainability, both in our Long Term Plan and in our day-to-day management practices.
"Our financial strategy will ensure we achieve a balanced budget within the next 10 years, and we have set out the pathway to do this in our Annual Plan 2022-23," Jo Miller says.
Standard and Poor’s full report will be available to read on our website here.