Credit Rating

Boost To Wollongong Council's Credit Rating

18 June 2008

WISE spending and a focus on infrastructure backlogs by administrators has led to an improvement in Wollongong City Council's credit rating.

Financial evaluators Standard and Poor's has given the council a AA+ rating, the council announced yesterday.

The rating, the second highest on the Standard and Poor's scale, was also awarded to the council in 2005 and 2006.

In 2007 the council received the same rating but with a "negative" outlook.

"This was based on concerns that a series of operating deficits were not being addressed by the then council," a council spokeswoman said.

"This year Standard and Poor's has revised its outlook rating ... to stable".

A Standard and Poor's spokesman said "the appointment of administrators strengthens council's credit quality because the administrators are implementing a plan to address the council's maintenance backlog and accrual operating deficits.

"Importantly, the council has demonstrated a strong appetite for strengthening the council's finances."

Council administrator Robert McGregor said the management plan was "designed to ensure our long-term financial sustainability by reinvesting substantial funds into the city's basic infrastructure, rather than embarking on major debt funded projects".

Back to News Index | Back to Home