S&P Global Ratings has affirmed Greater Wellington’s AA long‑term and A‑1+ short‑term credit ratings, noting the region’s strong economic fundamentals and robust financial management.
The international credit rating agency has maintained a negative outlook, reflecting uncertainty around upcoming central government policy changes and their potential impact on local government finances.
Greater Wellington Chair Daran Ponter says that the strong rating during a time of major government reforms and uncertainty is a valuable indicator of Greater Wellington’s fiscal responsibility.
“This rating makes it clear that while Greater Wellington is doing everything it can to deliver value for money services to our ratepayers, the proposed rate caps and other pressures from central government are putting a huge strain on our ability to do so,” says Cr Ponter.
Chair of the Finance, Risk and Audit Committee, Yadana Saw, says reforms are likely to erode existing core services while also threatening the viability of longer-term strategic projects.
“Changes to the Resource Management Act, rate capping and a review of the role of regional councils could negatively affect our future financial landscape, which makes it harder for us deliver on a cleaner environment, a more flood resilient region and critical public transport improvements.”
Greater Wellington’s Finance and Risk group manager Alison Trustrum-Rainey says that the report’s acknowledgement of the Council’s financial management track record is encouraging.
“Our previous performance and ratings have stood us in good stead and the report’s prediction that Greater Wellington is positioned for a return to operating surpluses from 2027 takes into account a number of contributing factors,” says Trustrum-Rainey.
“These include the transfer of water services management to the new multi-council-controlled water organization, Tiaki Wai in July this year which is expected to reduce pressure on our infrastructure programme, contribute to a decline in debt, and allow us to focus more closely on our core activities.”
Read the report summary here: https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3503994