International credit rating agency Standard and Poor’s has upgraded Christchurch City Council’s financial rating to AA-.
Previously the Council had an A+ rating.
The improved rating – the highest given to the Council since the earthquakes - reflects the recent global settlement with the Crown which transfers key decision-making powers and major assets to the Council, Council’s stronger financial management and growing asset base, as well as the improved economic outlook in the city.
It also reflects the fact the Council can readily borrow funds at a low interest rate.
“The new AA- rating from Standard & Poor’s shows we are in strong financial health and well-positioned to continue building on the momentum in Christchurch,’’ says Council General Manager, Finance and Commercial, Carol Bellette.
The earthquakes took a significant financial toll on the organisation and our credit rating was downgraded by Standard and Poor’s as a result. The work we have done has put us back on a strong financial footing and closer to regaining the credit rating we had prior to the earthquakes.
“With the Global Settlement now agreed and new high-value assets, like Tūranga, on our books, we are in a healthy financial position and that is reflected in the AA- rating that Standard & Poor’s have awarded us,’’ Ms Bellette says.