S&P Global Ratings says it may downgrade local councils’ credit ratings if the incoming Government repeals Labour’s water reforms without putting in place a workable alternative. Hastings District Council plans to spend $192 million on water infrastructure assets by 2030, while the Government report estimated that $936 million was needed. Downgrades across the motuRegardless, local councils are already highly leveraged, debt levels are rising, and some may struggle to fund even the lesser estimates. For example, Hamilton might drop from AA- to A+, Wellington City would fall from AA+ to AA, and Auckland could go from AA to AA-. Now, National hopes to herd local councils through its more flexible alternative and achieve a similar end result — except with less centralisation and heavy-handed government control.

Source: Stuff November 21, 2023 09:30 UTC