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- Release Date: 18/04/12 12:32
- Summary: CREDIT: AKC: Auckland Council receives strong credit rating
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AKC
18/04/2012 10:32
CREDIT
REL: 1032 HRS Auckland Council
CREDIT: AKC: Auckland Council receives strong credit rating
Media release
18 April 2012
Auckland Council receives strong credit rating from second rating agency
Auckland Council has been assigned a second long-term credit rating, in
addition to the Standard and Poor's rating of AA received in February 2012.
Moody's Investors Service today assigned Auckland Council a rating of Aa2.
The new rating is equivalent to the Standard and Poor's AA rating, and is the
third-highest credit rating on the Moody's credit rating scale.
Auckland Council remains one of New Zealand's highest-rated local entities
and its Aa2 rating is above that of the major domestic banks.
The additional credit rating from Moody's is required to support Auckland
Council's ongoing borrowing programme and provides a second opinion on the
financial strength of Auckland Council.
"Moody's reviewed our draft Long-term Plan, financial management and
projected debt levels and have assessed Auckland Council as high quality and
having very low credit risk," says Auckland Council Chief Financial Officer,
Andrew McKenzie.
"The new credit rating is required as part of council's debt strategy to
diversify it's investor base and lengthen our terms of funding. This in turn
will lead to achieving an overall lower cost of borrowing," he says.
Auckland Council is borrowing to fund investment in the transformative
projects, such as electric trains, CBD train loop and opening up our
waterfront, that will benefit all Aucklanders for generations to come. The
investment and associated borrowing is required to both cater for the future
growth of the city and achieve the goal of making Auckland the most liveable
city in the world.
"Auckland Council is increasing its debt as the most equitable way of funding
these future transformative projects. We are also diversifying our sources of
funding to secure the best rates for the people of Auckland and for the
region," says Mr McKenzie.
Ends
For media assistance, please contact:
Angela Jones
Senior Media Advisor
09 373 6267
End CA:00221941 For:AKC Type:CREDIT Time:2012-04-18 10:32:06
