S&P puts Christchurch council on negative ratings watch

Standard & Poor's has placed Christchurch City Council's AA+ credit rating on negative watch as it assesses the implications of damage from the weekend earthquake.

"We are monitoring developments in Christchurch to gauge the situation faced by the council as well as its holdings company in dealing with the effects of the earthquake on their assets and operations,'' S&P said.

"We have previously noted that Christchurch City's debt levels are high for the current rating and approaching levels that could lead us to reassess the rating.''

A further announcement on the credit rating is expected in the next three months. 

S&P said relevant factors would be the level of insurance coverage, the extent of damage and how much the council took part in rebuilding activity.

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