S&P Global Ratings says the credit risk for New Zealand’s local councils is rising after the coalition Government repealed Labour’s water reform legislation last week. “This is because of rising inflation and infrastructure budgets, and given the new National Party-led coalition government's promise to repeal existing water reform legislation”. It's all about making sure that local councils have the financial sustainability and what's required to invest in infrastructure over the long term”. Still ratedWhile the note warns about increasing credit risk, S&P didn’t downgrade any of the councils’ actual credit ratings. “New Zealand's local councils remain highly rated.

Source: Stuff February 21, 2024 09:37 UTC