Greater Wellington Regional Council Outlook Revised To Negative As Financial Metrics Weaken And Sectorwide Debt Rises

Overview

• Greater Wellington Regional Council's operating margins will weaken to less than 3% of operating revenues over the next three years. Large property rate increases will not fully cover inflationary pressures, and rising interest expenses and capital expenditure (capex).
• The weakening institutional settings of the sector are also putting downward pressure on our ratings on Greater Wellington.
• Consequently, we revised our long-term rating outlook on Greater Wellington to negative from stable. At the same time, we affirmed our 'AA+/A-1+' long-and short-term issuer credit ratings on the council.
• Excellent financial management and strong liquidity coverage continue to underpin our ratings on Greater Wellington.