Greater Wellington Regional Council Outlook Revised To Negative As Financial Metrics Weaken And Sectorwide Debt Rises
Overview
Greater Wellington Regional Council's operating margins will weaken to less than 3% of operating revenues over the next three years. Large property rate increases will not fully cover inflationary pressures, and rising interest expenses and capital expenditure (capex).
The weakening institutional settings of the sector are also putting downward pressure on our ratings on Greater Wellington.
Consequently, we revised our long-term rating outlook on Greater Wellington to negative from stable. At the same time, we affirmed our 'AA+/A-1+' long-and short-term issuer credit ratings on the council.
Excellent financial management and strong liquidity coverage continue to underpin our ratings on Greater Wellington.
