S&P Global Ratings Research Update for Greater Wellington Regional Council, February 2024

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S&P Global Ratings Research Update for Greater Wellington Regional Council, February 2024 preview
  • Published Date Wed 21 Feb 2024
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Greater Wellington Regional Council Outlook Revised To Negative As Financial Metrics Weaken And Sectorwide Debt Rises

Overview

  • Greater Wellington Regional Council's operating margins will weaken to less than 3% of operating revenues over the next three years. Large property rate increases will not fully cover inflationary pressures, and rising interest expenses and capital expenditure (capex).
  • The weakening institutional settings of the sector are also putting downward pressure on our ratings on Greater Wellington.
  • Consequently, we revised our long-term rating outlook on Greater Wellington to negative from stable. At the same time, we affirmed our 'AA+/A-1+' long-and short-term issuer credit ratings on the council.
  • Excellent financial management and strong liquidity coverage continue to underpin our ratings on Greater Wellington.
Updated February 21, 2024 at 2:12 PM