Waikato District Council has retained its AA+ (outlook negative) long-term credit rating and F1+ short-term rating from Fitch Ratings, following the agency’s annual review.
AA+ is the highest rating currently assigned by Fitch to a New Zealand local government agency. It reflects very strong capacity to meet financial commitments and prudent long-term financial management.
The negative outlook component reflects an economic landscape with sector-wide uncertainty, including reform and funding constraints. These impacts are felt by local government across Aotearoa New Zealand, making the AA+ especially reassuring in challenging economic conditions.
Retaining a higher credit rating lowers interest costs, which means more rates stay within the district, funding local projects and services instead of going to the bank paying interest.
Paul Conder, Chief Financial Officer said, “in a time when households are watching every dollar, it is important that Council does the same. Retaining the highest rating available to New Zealand councils demonstrates that we are careful, disciplined and prudent in how we manage ratepayer funds.”
“It shows we are not wasteful. We plan responsibly, manage debt carefully, and protect the long-term financial sustainability of our district.”
Credit ratings are generally reviewed annually but can be reassessed if significant changes occur.
