Council retains credit rating, outlook stable
Kāpiti Coast District Council has maintained its AA/A-1+ S&P Global credit rating.
In its latest report the independent ratings agency S&P Global has affirmed Council’s AA/A-1+ credit rating for the next 12 months. It also revised its long-term rating outlook to stable from negative.
S&P Global cited improving economic growth prospects for Kāpiti, driven by population growth, hybrid working and improved access to Wellington, and robust financial management for the continued good rating and stable outlook.
Kāpiti Mayor K Gurunathan says the report is an endorsement of Council’s strategy and management.
“Last year we adopted an investment approach for Kāpiti to make sure the district is well-positioned for the population growth we expect to continue over the next 30 years, to build resilience and to assist in our COVID-19 recovery,” Mr Gurunathan says.
“While last year this new direction contributed to a negative outlook, the intervening months have shown this to be the right option.
“Our economy grew 7.4 per cent in the year to March, more people are moving here and with Transmission Gully open we have better and more resilient transport links for both people and goods.
“We acknowledge that right now times are tough for many. The cost of living is high and COVID-19 and other international factors continue to disrupt businesses and households.
“The bigger picture is that Kāpiti is well-placed for the future and Council has the plans and strategies to maximise the opportunities we are seeing arise. There are lots of positives.”
Acting Chief Executive Gary Simpson says it is pleasing to have Council’s strong management highlighted in the report.
“We understand that relative to other councils we have higher debt levels but this is offset by measures like our robust prefunding policy,” Mr Simpson says.
“S&P Global acknowledge this and other factors contributing to this strong result. The future will no doubt throw up more challenges to meet, but we are in a good position to take these on.”