Independent tick for NPDC's prudent financial management

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NPDC’s finances, including plans to pay for 10-Year Plan investments such as $248 million to Fix our Plumbing, have got the independent tick of approval from international ratings agency S&P Global.

The agency has reconfirmed NPDC’s AA+ Stable credit rating, the highest possible rating for councils in Aotearoa.

S&P Global expected NPDC to “continue to prudently manage” its budgets and debt as it invested more in infrastructure, the agency said in its report.

NPDC’s exceptional financial position was also supported by the district’s Perpetual Investment Fund (PIF), which hit a record $346 million in the last financial year and cut the total rates requirement by $9m.
“New Plymouth's liquidity, which is buttressed by its $346 million PIF, remains excellent,” said the report.

The AA+ stable rating reflects the sound financial approach to fixing long-term infrastructure issues while managing debt for future residents, said NPDC Chief Financial Officer Joy Buckingham.

“This shows we’re paying close attention to our financial position as we manage assets valued at $3.5 billion on an operating budget of about $177m.  It also allows us to be flexible in continuing to build a Sustainable Lifestyle Capital while moving toward a post-Covid world, so that our district remains a great place where our kids want to live and work,” said Ms Buckingham.

Read the full S&P Global report here.