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Latrobe City Assigned AA Rating

Top Rating By Internationally Renowned Credit Agency

By Latrobe City Council - 18th May 2002 - Back to News

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Latrobe City Council has been assigned AA rating by Standard & Poor’s. The internationally renowned credit agency has provided the City with one of the highest credit ratings assigned to a municipality, and only slightly behind that of the City of Sydney and City of Brisbane.

Latrobe City’s Chief Executive Officer, Richard Hancock, said Latrobe City had initiated the request to be assessed by the ratings agency, and had opened up the municipality’s books for assessment. "We believed Latrobe City was in a highly commendable financial position for a local authority, and the AA rating assigned by the agency verify this," Mr Hancock said.

"Standard & Poor’s undertook a thorough assessment of our previous current, committed, and future financial expectations taking into account proposed borrowings for the corporate headquarters consolidation. This is done by evaluating the economy, predictability and stability, management capacity, fiscal flexibility, budgetary performance, liquidity and debt management, together with long and short-term obligations.

"The AA rating we received indicates that the capacity of Latrobe City to borrow and to repay principal and interest with respect to long or short term obligations in a timely manner is very strong. Standard & Poor’s state that a rating of AA differs ‘only in a small degree’ from the highest rating they assign, which is AAA. It’s clear to see we are rated very highly," Mr Hancock said.

A credit rating from Standard & Poor’s is recognised worldwide as an independent measure of creditworthiness. This means that we are in an extremely sound position and our high rating can be used when marketing the region to attract new business ventures. It is also promotes an assurance of the long term performance capabilities of a local authority when seeking partnerships in large scale projects, development programs, and in choosing the most efficient and cost-effective source of funding at any given time; so this is extremely good news for Latrobe," Mr Hancock concluded.

Source: www.gippsland.com

Published by: news@gippsland.com



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