Marlborough District Council has retained its ‘AA’ long term credit rating (negative watch) as well as an 'A-1+' rating in the short term, confirmed this week by S&P Global, whose credit ratings are based on objective analysis and independent assessment.
The long-term rating was an endorsement of Council’s sound financial management despite the negative watch applied when a rating agency identifies risks that could weaken Council’s financial strength or credit profile, Mayor Nadine Taylor said.
“The negative watch is due to the unknown future borrowing requirement that Port Marlborough may need for future interisland ferries’ portside infrastructure, as well as S&P’s overall view on the NZ local government sector and the infrastructure investment the country as a whole faces,” she said.
“There are also a lot of external factors outside our control reflected in this assessment, including inflation and interest rates. Overall though it’s a very pleasing result given the current fiscal environment.”
S&P Global noted that Council’s financial management was a key strength underpinning the AA long term rating.
“We view Marlborough's financial management as a key strength underpinning its ratings. The council has historically recorded strong fiscal outcomes and has one of the lowest gross-debt to operating revenue ratios of all New Zealand councils rated by S&P Global Ratings,” the report said.
Mayor Taylor said the rating reflected positively on Council’s fiscal processes and governance and provides confidence to Marlborough residents and ratepayers.
“Retaining this rating is beneficial for us as a Council and a region as it affords access to better loan interest rates, which in turn allows us to better utilise our available financial resources,” Mayor Taylor said.
The rating covers the Council group of entities, which includes MDC Holdings Ltd, Port Marlborough NZ Ltd and Marlborough Airport Ltd.
