General Announcement::Auckland Council retains strong credit rating

Issuer & Securities

Issuer/ Manager
AUCKLAND COUNCIL
Securities
AUCKLAND COU NOK1.4B 4%N280909 - XS0964196603 - 2ZFB
AUCKLANDCOEU185M 2.125%N340324 - XS1045821847 - 3E4B
Stapled Security
No

Announcement Details

Announcement Title
General Announcement
Date &Time of Broadcast
27-Oct-2016 11:49:47
Status
New
Announcement Sub Title
Auckland Council retains strong credit rating
Announcement Reference
SG161027OTHRVGFM
Submitted By (Co./ Ind. Name)
Andrew John
Designation
Funding Manager
Effective Date and Time of the event
06/10/2016 17:00:00
Description (Please provide a detailed description of the event in the box below)
27 October 2016

Auckland Council retains strong credit rating from Moody s and Standard & Poor s

Auckland Council has retained its strong credit ratings from international agencies Moody s Investor Service and Standard & Poor s.

Both Moody s and Standard & Poor s reaffirmed the council s credit ratings as Aa2 and AA respectively, with a stable outlook from both.

The reaffirmed ratings reflect the strength of council s debt servicing ability, acting Group Chief Financial Officer Matthew Walker says.

Our financial strategy sets limits on the council s borrowing to maintain debt at a sustainable level, Mr Walker says. While total group debt is projected to reach $11.6 billion by 2025, it will still remain at a prudent level in comparison to our annual income of $5.4 billion, by 2025.

The council considers this increase in debt to be appropriate on the basis that it is primarily driven by investment in new assets and the benefit of the expenditure is spread over time, thereby promoting inter-generational equity costs are shared with those that benefit from the assets, he says.

ENDS

For further media assistance, please contact:
Jess Etheridge, Media Advisor
+64 21 895 847 or Jessica.Etheridge@aucklandcouncil.govt.nz.

Attachments

Auckland Council retains credit ratings.pdf
Total size =129K