Council credit rating remains stable
Kāpiti Coast District Council has maintained its AA Standard and Poor’s credit rating for the long-term.
In its latest report the independent ratings agency Standard and Poors has affirmed its AA/A-1+ long- and short-term ratings, saying Council's experienced management and New Zealand institutional settings support the ratings while the district's economic profile tempers these strengths.
Because of the investment approach in the newly-adopted Long-term Plan 2021-41 there is potential for a change in future years and this is reflected with a revised outlook from stable to negative.
Kāpiti Mayor K Gurunathan says it is pleasing to see Council retain strong credit ratings in what has been a difficult period.
“We have worked hard over many years to improve our financial position and continue to do so,” Mr Gurunathan says.
“The change in outlook is not surprising given the challenges we and the world face. The investment approach we are taking through our new Long-term Plan to respond to COVID-19 and build resiliency is something we are able to do because of our earlier efforts.”
Standard and Poors also noted Council's operating balance will remain strong, has exceptional liquidity coverage and the flexibility to adapt plans as required.
Chief executive Wayne Maxwell says extraordinary times have required a shift in strategy and this is reflected in the report.
“We are embarking on a vastly increased capital works programme in order to secure our future against the COVID-19, climate change and growth challenges we face,” Mr Maxwell says.
“To have retained our AA credit rating reflects our financial management over several years and is a tribute to our hardworking team.”