Council credit rating remains strong

30 May 2017

Taupo District Council have retained their AA credit rating with a stable outlook from Standard and Poor's on the back of a strong financial position.

In their report to council, the international rating agency commented on Council's focus on budgetary performance and flexibility, exceptional liquidity and low contingent liabilities.

"Taupo's financial management is strong the council has focused on fiscal consolidation following years of key infrastructure spending," the report said.

The agency also forecast Council's debt levels would continue to decline relative to revenues as council maintains its strong operating position.

Mayor David Trewavas said he was pleased the report showed council was continuing on the right track.

"Standard and Poor's report reflects our strong commitment to working towards the best outcomes for the Taupo District," he said. "By having a strong financial position we are able to keep our levels of service high while keeping rate increases as low as possible."

The AA rating is the highest that can currently be attained by councils, as they cannot have a higher rating than central government, which is currently at AA+ with a stable outlook.

Standard and Poor's monitor the credit rating of council throughout the year and formal review of council's financial position annually.