Gold star ratings report for capital's council

19:16, Nov 22 2012
CAPITAL SPOT: Wellington.
WELL RUN: International ratings agency Standard & Poor's has praised Wellington City Council's management.

International ratings agency Standard & Poor's has praised Wellington City Council's management as it reaffirmed the capital's high-class credit rating.

S&P's credit analysts in Melbourne said Wellington's AA credit rating was supported by a high income local economy, the council's "very capable management team" and budget flexibility. Partially offsetting the positives was an increasing debt burden.

"Wellington City's key strength is its excellent financial management," said credit analyst Yee Farn Phua. "Standard & Poor's considers the council's asset- management strategies as being sophisticated, given they are inextricably linked to the council's financial-management tools. The council manages both external and internal risks through an extensive and credible management framework . . . Wellington City tends to exceed its legislative requirements."

S&P said the outlook for Wellington's credit rating was stable, which was likely to be the case for at least two years. Its rating is just one notch below that of the New Zealand Government.

Contact Hamish Rutherford
Business reporter
Email: hamish.rutherford@dompost.co.nz
Twitter: @oneforthedr

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