Credit rating lifts for Western Bay of Plenty District Council

Aerial Photo of Omokoroa. Photo / Western Bay of Plenty District Council

The highest possible ranking has been bestowed on the Western Bay of Plenty District Council and the outlook is positive.

International credit rating agency Standard and Poor's has lifted the council from AA minus to AA rating - the highest possible ranking for a local authority - and has revised the council's outlook from stable to positive.

The upgrade is in recognition of council's significant reduction in debt, good financial performance and positive fiscal outlook.

Council chief executive Miriam Taris said the upgrade was a positive report card for the council.

"This result comes on the heels of our annual report which reflects our falling debt and strong budgetary performance after funding operational costs and capital works.

"The new rating should also provide stakeholders and the community with confidence that council promotes a strong management culture, fiscal discipline and high levels of financial disclosure to support council's prudent approach to financial management.''

In a report released in late September, the agency noted it expected the council's financial position to continue to improve as it benefited from strong revenue growth.

Sound financial management was helping the Western Bay of Plenty District Council achieve after-capital account surpluses and reduce its debt levels.

These stronger financial forecasts also support the council's liquidity position via higher cash reserves.

Since 2012, The Western Bay of Plenty District Council has shrunk its net debt from $144m to $80m and has budgeted $43m for capital works in this current financial year.