The Invercargill City Council’s credit rating is the highest possible, according to a leading global company in credit ratings and research, Fitch Ratings.
Fitch announced earlier this week that Council’s rating had improved from AA to AA+, and confirmed the outlook was stable.
The upgrade follows Fitch’s assessment of the Council’s improving fiscal performance and more according to the company’s revised rating criteria for International Local and Regional Governments.
Council Chief Executive Clare Hadley welcomed the improved rating.
“In the past 18 months, Council officers have implemented a programme which focuses on improved financial performance, keeping elected members informed with better reporting, and increased transparency for the public,” Mrs Hadley said.
As part of this work, Councillors decided to join the Local Government Funding Agency, which has resulted in reduced debt costs and increased financial flexibility.
“The improved rating reflects the ongoing commitment from officers to deliver on both Council and the community’s desire for a financially responsible organisation,” Mrs Hadley said.
“The local government sector has a unique mandate in that we must always consider each of the four wellbeings, recently reintroduced to the Local Government Act.
“Balancing economic wellbeing with environmental, cultural, and social wellbeing can present challenges. However, improving our economic position will enable Invercargill City Council to better support cultural, social, and environmental initiatives,” she said.