Waipa is in great financial shape
17 June 2019
Waipa District Council has received its first credit rating, and it's good news.
Fitch Ratings has assigned Waipa a long-term local currency Issuer Default Rating (IDR) of 'AA-' and a short-term local currency IDR of 'F1+'. The outlook on the long-term IDR is stable.
Ken Morris, group manager of business support and chief financial officer at Waipa District Council says this is a significant endorsement of Waipa's financial strength and stability, and confirms council has sound financial management.
It also endorses the economic strength of our district, our political and management stability, and our organisational practices, Morris explains.
The ratings are robust and assigned based on Fitch's strict rating criteria for international local and regional governments, for the most part looking at their profiles and debt sustainability ratios, he says.
Hong Kong and Sydney-based analysts reviewed Waipa's historic and projected financial data and met with mayor Jim Mylchreest, chief executive Garry Dyet, Ken Morris and other key members of Waipa's leadership and finance teams as part of their assessment. The final rating was signed off by an international rating committee.
Our rating compares well with other local and regional councils across the country. We understand the only New Zealand local authority to be rated higher than us by Fitch is Invercargill City Council with a AA', so we're very proud of this result, Morris adds.
Waipa's rating has secured the immediate benefit of a 15 basis point (0.15%) discount on any new long-term borrowings from the Local Government Funding Agency. This will save council tens of thousands of dollars in annual interest costs.
The rating is subject to ongoing monitoring and an annual review by Fitch, and Morris says his team are focussed on maintaining Waipa's financial strength and sustainability.
For more information, contact: Charlotte FitzPatrick, 027 300 9836.