Marlborough District Council has had its credit rating reaffirmed at ‘AA-‘ with a stable long-term outlook.
Council also retained its 'A-1+' rating in the short term, confirmed by S&P Global recently whose credit ratings are based on objective analysis and independent assessment.
S&P Global said in confirming the rating that “the stable outlook on Marlborough reflects our view that the council's exceptional financial management will deliver strong operating results and maintain strong liquidity coverage while it delivers a large infrastructure pipeline over the next few years.”
Mayor Nadine Taylor said the long-term rating was an endorsement of Council’s sound fiscal management.
“It confirms we are regarded to be well placed to deliver on the final phase of our Marlborough Sounds roads recovery programme by December 2027.
“We are also in an advantageous position to be able to support Port Marlborough NZ to develop the new portside infrastructure required for two new interisland ferries arriving in 2029, lending which is still subject to consultation with ratepayers once details of the requirements are confirmed.
“This is a very pleasing result given the challenging fiscal environment Council has had to navigate over the past few years. This result should give confidence to Marlborough residents and ratepayers.
“Retaining this rating is beneficial for us as a Council and a region as it affords access to better loan interest rates, which in turn allows us to better utilise our available financial resources,” Mayor Taylor said.
S&P Global noted that Council’s financial management was a key strength underpinning the AA- long-term rating.
“We view Marlborough's financial management as a key strength underpinning the ratings. The council has historically recorded strong fiscal outcomes and has one of the lowest ratios of gross debt to operating revenue out of all New Zealand councils that we rate,” the report said.
The rating covers the Council group of entities which includes MDC Holdings Ltd, Port Marlborough NZ Ltd and Marlborough Airport Ltd.
