Council keeps favourable credit rating

Hamilton City Council has kept its same favourable AA- credit rating, following Fitch Ratings recent review of Council after Audit New Zealand’s report into Council’s V8 Supercars race processes.

Fitch Ratings’ Sydney office affirmed Council’s long term currency ratings at AA- and its short term local currency rating at F1+. The outlook continues as stable.

In confirming the ratings Fitch said they reflected the city’s commitment to address corporate governance issues and address weaknesses, as well as keeping the Local Government Minister up to date on the improvement process. They consider measures already taken as appropriate.

Looking to Council’s 10-Year Plan for 2012-22 Fitch expects Council to reprioritise its capital programme as well as taking steps to improve its operating budget performance, leading to a positive impact on reducing debt.

Commenting Mayor Julie Hardaker says: “I am very pleased we have maintained this positive credit rating which provides an independent view that the steps we are taking to get Council back on track following the V8 audit report are the right ones.

“It is important for Council to have a good credit rating, and we are also looking during our draft 10-Year Plan budget deliberations in December to making sure we continue making financially prudent decisions.”