Council's AA credit rating maintained

7 July 2016

International rating agency Standard and Poor's have retained Taupo District Council's credit rating at AA with a stable outlook on the back of "very strong financial management."

In their report to Taupo District Council, Standard and Poor's commented on Council's solid control of its finances, flexible management of budgets, exceptional liquidity and low liability risks.

"Taupo's financial management is focussed on fiscal consolidation following years of infrastructure spending," the report said. "This has contributed to the council's strong budgetary performance, boosting its operating cash position while debt levels have been declining."

The agency also forecast Council's debt levels will continue to decline.

"The Council's stronger operating position, combined with its small capital-expenditure programme, is driving after-capital account surpluses that will reduce its debt."

Mayor David Trewavas said the report reflects the Council's commitment to working towards the best outcomes for the Taupo District.

"This Standard and Poor's report shows that we're continuing on the right track and our improving financial position means we can continue to keep rate increases low while delivering the same level of service."

Standard and Poor's monitor New Zealand councils throughout the year and conduct a formal assessment of each council's financial position every 12 months.