Invercargill City Council has again been affirmed as having an AA+ Stable credit rating by international credit rating agency Fitch Ratings.
A corporate credit rating is an assessment of a company’s creditworthiness. The credit rating helps investors or lenders determine the risks and the organisations capacity to manage debt, meaning it is less difficult for Council to borrow if it needs to.
Council Finance and Assurance Group Manager Michael Day said Council received the positive rating due to robust revenue, low-risk contingent liabilities, financial prudence and a certain amount of flexibility.
“Council has managed to reconfirm its excellent credit rating once again,” he said.
“It is fantastic news from our Treasury point of view and proves we are still very prudent in our management of the finances.”
The rating means there is not only continued independent confidence in the Council’s financial outlook but there is also room to move should the need arise, he said.
In its report, Fitch also said it did not expect New Zealand’s Three Waters reforms to change its assessment of Council’s risk profile of debt sustainability.