Stable credit rating maintained by the Board
The international rating agency Standard & Poor’s (S&P) has maintained Hamilton City Council’s positive credit rating of AA-.
Year after year, the Board has maintained this rating, indicating that the organization is in a “very strong” position to meet its financial commitments.
For major new infrastructure or unforeseen events, the Council may need to borrow money to cover costs – the AA- rating of the Council provides assurance to lenders that any debt incurred carries very low credit risk. and a strong repayment capacity.
The score also gives the Council access to lower interest rates on its loans through the Local Government Finance Agency.
The rating is a testament to excellent city planning and long-term financial management, said Council Finance Committee Chair Councilor Rob Pascoe.
“This is a great achievement given the unprecedented growth and demand on existing infrastructure and services, and the impact of COVID-19,” he said. “Maintaining this rating shows that we have financial stability and gives us the confidence to continue to invest and grow our city’s assets. “
Credit scores are independently managed to assess an organization’s ability to manage debt.
S&P is one of three global credit bureaus that provide ratings based on a wide range of factors including finance, repayments, business history, and the economic market.
In addition to positively reflecting the financial management and planning of the Board, S & P’s rating remains optimistic about the local economy.
“Hamilton’s economy has recovered from the COVID-19 pandemic, supported by a wide range of industries and being the third fastest growing urban area in the country behind Auckland and the surrounding area,” the report said. report. “[Hamilton’s] economic growth increased 7.3% in the 12 months to June 2021, demonstrating a post-containment boom. We believe that the major, entirely new projects underway such as Peacocke and Rotokauri will help the economy recover and add approximately 20,000 homes over the next decade to meet the demand for residential housing.