Credit rating increase on back of strengthening performance

10 June 2014

Credit rating agency Standard and Poor's have upgraded Taupo District Council's rating to AA- positive outlook on the back of strengthening budgetary performance.

The world-renowned rating agency has issued a report to the council acknowledging its very positive view of Taupo District Council's financial management, very high budgetary flexibility and a positive view of its liquidity.

Taupo's financial management is a very positive ratings factor and has strengthened under the guidance of a strong financial management team, the report said.

Taupo's focus on fiscal consolidation following years of infrastructure spending should help stabilise its borrowings, and over time, reduce its debt burden.

Mayor David Trewavas said ratepayers could take heart from the report as it clearly showed that the Council, management and staff were working hard in the best interest of the district.

Council finances and the way they are being managed are often criticised because they are very complex and difficult to understand.

While our finances are audited by the Office of the Auditor General regularly, this is another report that acknowledges we are on the right track, particularly in terms of addressing our debt, he said.

We are one of only 13 councils in the country to have an AA-/A1+ rating or greater and it puts us in an incredibly strong position for negotiating the best possible deal for the ratepayer when it comes to servicing our debt.

Our previous AA- stable rating saved us more than $250,000 in interest on our loans each year and this move to positive outlook means that could increase in the years to come.

Standard and Poor's conduct an assessment of Taupo District Council's financial position every 12 months.

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FOR FURTHER INFORMATION CONTACT:

Lisa Nairne Communications Manager 07 376 0762 027 839 8410

Taupo District Council

www.taupo.govt.nz