Invercargill City Council’s economic outlook has garnered an AA+ rating from leading global company in credit ratings and research, Fitch Ratings.

Councillor Lesley Soper, chair of Council’s Finance and Policy committee, said the rating reflected Fitch’s affirmation of Council’s financial performance.

“It’s excellent news, and will further solidify Invercargill City Council’s reputation as a solid economic steward of our community. Fitch’s credit rating has a direct impact on Council’s cost of borrowing, and maintaining our rating at AA+ ensures this does not result in an additional cost to our bottom line,” she said.

“Council and its elected members are very aware that the global economic outlook has been challenging, including for those within our community. It is extremely pleasing to receive confirmation from an independent source that Council has continued to demonstrate a solid financial performance, and has consistently taken a conservative management approach.”

According to its report, Fitch gave Council an AA+ rating due to its stable funding structure anchored by its rates income, and Council’s capacity to manage its expenditure. It noted this would gain support from easing inflationary pressures.

The report also noted a large capital expenditure schedule, which would drive debt higher in the medium term; however, it believed this would be counterbalanced by a firmer operating performance to maintain debt at manageable levels.

Its findings also pointed to Council’s steady economic performance and strong funding profile, and noted it would lead to sustainable revenue growth.

To find out more, view the report here.