Ratings agency positive

Posted on 27 July 2009

A track record of fiscal discipline, strong support from central government and a sound local economy were the major reasons behind international credit rating agency Standard and Poor’s awarding Greater Wellington Regional Council a credit rating of AA–/Stable/A-1+.

 “This is an excellent result for Greater Wellington, particularly in the current economic environment,” according to Cr Judith Aitken, chair of the Council’s Finance Audit & Risk Committee.

 “Greater Wellington prides itself on being prudent and conservative when it comes to funds it collects from and invests on behalf of ratepayers. It is rewarding to see a reputable international ratings agency acknowledge this.

 “This is the first time we have had our wholly owned subsidiary company WRC Holdings Ltd rated separately. Standard & Poor’s has assigned the same credit rating and outlook to this business as it has to Greater Wellington. WRC Holdings administers Greater Wellington’s investments in CentrePort and rail rolling stock.

 “A favourable credit rating makes a considerable difference to Greater Wellington’s costs of borrowing money. This will be particularly important over the next few years as we borrow to fund the costs of improving the region’s commuter rail network and other major infrastructure upgrades,” Judith Aitken said.