Invercargill’s AA+ credit rating reaffirmed

Invercargill City Council is pleased to receive an unchanged AA+ credit rating from leading global company in credit ratings and research, Fitch Ratings.

Fitch Ratings is an international credit rating agency that provides independent assessments of credit risk and ranks the credit worthiness of organisations, affecting how much money they can borrow.

Council Group Manager Finance and Assurance Patricia Christie said the rating reaffirmed Council’s strong financial health and placed the organisation at the higher end of the rating scale when compared with other councils.

“A reaffirmed AA+ rating shows that Council is continuing to maintain a steady financial profile, and we’re ready and able to respond to imminent budgetary pressures,” she said.

“This is great news for the people of Invercargill. A strong credit rating ensures our interest rates remain the same as other comparable councils, ultimately benefitting ratepayers and the wider community,” she said.

The report highlighted Council’s predictable revenue growth, flexibility to adjust its capital programme, sensible liability management, and a manageable increase in debt aligned with operating performance.

Chief Executive Michael Day said the report also confirmed that Council’s main expenditure, consisting of water and waste management, roads, and other local developments, were well-planned and covered by revenue.

“I’m incredibly pleased to receive independent endorsement of Council’s sound approach to delivering our core services,” he said.

“Local authorities have been facing increasing infrastructure and budgetary challenges in recent years. This rating clearly reflects Council’s continued financial prudence and shows we are in a strong position to meet these ongoing challenges.”

View the Fitch Ratings report for Invercargill City Council here.