Council Receives Credit Rating Upgrade
Friday, May 26, 2017
Global Ratings Agency Standard and Poors (S&P) have upgraded the South Taranaki District Council’s (STDC) long term credit rating from A+ to AA- and short term rating from A-1 to A-1+ with Stable outlook.
STDC Chief Executive, Craig Stevenson, says the upgrade reflected the Council’s sound financial management and liquidity coverage.
“This credit rating upgrade from S&P is great news not only because it signals strong confidence in Council’s financial management from a well-respected independent source, but also because it will result in significant savings for our ratepayers,” says Mr Stevenson. “The higher credit rating means we will be able to save a further $60,000 annually on debt servicing in the future” he says.
The ‘Stable’ outlook, reflects S&P’s expectations that the Council will maintain its (improved) financial position by keeping after-capital account deficits to less than 10% of total revenues, on average, and its total tax-supported debt well below 270% of operating revenues.
The STDC is one of 24 Councils across the country that has credit ratings. S&P conducts its reviews annually.