Credit Quality on NZ Local Governments: S&P Report.Business Editors MELBOURNE Melbourne, city, Australia Melbourne, city (1991 pop. 2,761,995), capital of Victoria, SE Australia, on Port Phillip Bay at the mouth of the Yarra River. Melbourne, Australia's second largest city, is a rail and air hub and financial and commercial center. , Australia--(BUSINESS WIRE)--June 17, 2003 Standard & Poor's Ratings Services Ratings Service A company, such as Moody's or Standard & Poor's, that rates various debt and preferred stock issues for safety of payment of principal, interest, or dividends. today released the results of its credit quality survey of 41 regional and territorial local governments in New Zealand New Zealand (zē`lənd), island country (2005 est. pop. 4,035,000), 104,454 sq mi (270,534 sq km), in the S Pacific Ocean, over 1,000 mi (1,600 km) SE of Australia. The capital is Wellington; the largest city and leading port is Auckland. . The survey results indicate that the credit quality of the local government sector in New Zealand is strong but diverse. Speaking at the launch of Standard & Poor's New Zealand Local Governments CreditStats 2003 publication in Auckland Auckland (ôk`lənd), city (1996 pop. 345,768; urban agglomeration pop. 991,796), N North Island, New Zealand. It is situated on an isthmus and is the largest urban region and chief port of the country. today, Rick Shepherd, director, Public Finance Ratings, said that the sector's strong credit quality in 2002 should continue in 2003, but, despite the overall pattern of robust finances, sound operating performance, and adequate infrastructure, some diversity of financial profile exists among the local government sector. "Although most of the key financial indicators for local governments in New Zealand are strong, there is considerable dispersion dispersion, in chemistry dispersion, in chemistry, mixture in which fine particles of one substance are scattered throughout another substance. A dispersion is classed as a suspension, colloid, or solution. , suggesting that some rating diversity exists among local governments," Mr. Shepherd said. Based on its experience of rating local governments in New Zealand, Standard & Poor's believes that the ratings on the majority of New Zealand local governments would likely fall broadly within the existing span. However, the ratings on some local governments could fall below the 'A' rating category. "Any changes in credit quality are most likely to be driven by changes in the management style and fiscal prudence of councils," Mr. Shepherd added. Standard & Poor's currently has public ratings on seven local governments: Auckland City Council Auckland City Council is the local government authority representing Auckland City, New Zealand. It is an elected body representing the 404,658 residents (2006 census) of the city (which includes some of the Hauraki Gulf islands such as Waiheke Island and Great Barrier Island. , Christchurch City Council, Dunedin City Council, Greater Wellington Regional Council, Hutt City Hutt City, city (1996 pop. 95,871), S North Island, New Zealand, in the Hutt River valley, part of the greater Wellington urban area; formerly called Lower Hutt. Industries in the area include metalworking, engineering, textiles, and consumer products manufacturing. Council, New Plymouth New Plymouth, city (1996 pop. 48,871), West Coast North Island, New Zealand, on the Tasman Sea. It is a port and a major center for dairying. Other industries include natural gas processing and metal working. District Council, and Tauranga District Council. All have a rating of between 'AA+' and 'A', compared with a median rating of 'A-' for the corporate and infrastructure entities in New Zealand. However, this differentiation is in line with the global trend, as local governments worldwide tend to be rated higher than corporate entities, because governments have a taxation power. A copy of the article, "New Zealand Local Governments: Credit Quality Strong But Diverse", is available on RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. The full report New Zealand Local Governments CreditStats 2003 can be found on Standard & Poor's Web site at www.standardandpoors.com.au. Click Credit Ratings and find the article under "Commentary & News". Standard & Poor's is a leader in providing widely recognized financial data, analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. research and investment and credit opinions to the global capital markets. With more than 5,000 employees located in 18 countries, Standard & Poor's is an integral part of the world's financial architecture. In Asia, we have been voted the most influential rating agency of 2001 and 2002 by FinanceAsia, and Rating Agency of the Year by INSTO, for the third year running. Additional information is available at www.standardandpoors.com.au. Copyright (c) 2003, Standard & Poor's Ratings Services |
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