Guy Burns, Deputy Chair of the Paraparaumu-Raumati Community Board, welcomes the news of Council’s improved credit rating outlook; up from A+ to AA.
“This jump is a direct result of KCDC abandoning (due to public pressure) its ridiculous ‘loans for investment’ plan. The scheme was to borrow money to invest in the financial market, this would have increased pressure on our high debt level.
“The improved credit rating is only one measurement of Council. Huge staff costs are a concern and an in-depth independent review of this expenditure is urgently needed.”
Abridged media release from the KCDC last week:
Independent financial rating agency Standard and Poor’s has today revised the Kāpiti Coast District Council’s credit rating outlook up two grades from A+ to AA.
The report confirms the Council’s budgetary performance is stronger than expected and continues to improve. It acknowledges the impact of strong financial management and focus on paying down debt.
The report says that Council’s liquidity coverage is exceptional due to its prefunding strategy and access to funds from the Local Government Funding Agency. It commends the management team’s efforts to continually improve the Council’s financial position.