Auckland Council has had its AA credit rating affirmed by Standard and Poor’s and is no longer on negative credit watch.
In November Standard & Poor's decided to put the council on credit watch after details of its expensive transport plans emerged.
Auckland Council's plans for transport by 2020 include electrifying the existing rail network, completing a CBD rail link and extending ferry services to Beach Haven and Hobsonville.
''The rating action follows our discussions with Auckland Council which highlighted their plans to significantly increase capital expenditure, particularly in the area of transport,'' S&P analyst Anna Hughes said in
November.
The council has five bond issues listed on the New Zealand debt market, with a combined total of $973.6 million.
Today, S&P said strong financial management, the supportive institutional framework of Auckland Council and the important role the Auckland region plays in New Zealand’s economy as the country’s financial and economic hub.
Standard and Poor's in statement says the rating action reflects the strength of Auckland’s economy, the council’s strong financial management and better regional cooperation.
AA is the third highest rating on Standard and Poor’s list and NBR understands it is unusual for local government to have such a high rating given current economic conditions.
Comments and questions
Does this mean Len gets his Mayoral credit card back to buy Christmas hams and suntan spray?
What's it matter what he spends on with an approved credit card so long as he pays it back, which he did? What else is it gonna be used for? Bellydancers at dinners like John Banks used to spend on?
Dirty ole Len and his credit card - thanks for reminding me. Didn't he buy a dodgy dinner at an Italian restaurant with the credit card, that he refused to talk about?
won't be long till red len gets the coveted S&P AAA rating - all he has to do is keep on screwing stupid bastards like us with his ever increasing rate demands.
Pablo and Hamish - what trivial and silly comments you have posted - waste of time to read. Ratings impact finance costs so this is fairly good result
Pablo and Hamish - what trivial and silly comments you have posted - waste of time to read. Ratings impact finance costs so this is fairly good result
When I invest I base all my decisions on what S&P say. They have a proven record
We need the Mayor to slap himself silly, that will be good for Auckland.
I guess now the Mayor has been slapped by his own council over payroll taxes and inreasing gst in Auckland, he's not likely to get his train set. Hence why S&P have revised their ratings
Trivial? nope. Quite funny. Quite accurrate. The issue is however, how big is the scale of Len Brown's clown-esque detrimental and degenerative influence to regional prosperity, confidence and aspiration. Perhaps that's his spend big deliver nothing UN laid out game plan. ;-)
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