Upper Hutt City Council welcomes the latest assessment from S&P Global Ratings, which has upgraded Council’s long-term issuer credit rating from A to A+.
The assessment also affirms Council’s A-1 short-term rating and maintains a positive outlook.
S&P Global Ratings said: “The Council now has one of the strongest budgetary performances among rated New Zealand councils, from one of the weakest.”
S&P also noted that Council has been rebuilding its financial buffers in line with the 2024 Long Term Plan, alongside a stabilised staff headcount and a more disciplined approach to selecting capital projects.
These actions reflect Council’s ‘back-to-basics’ approach to strengthening its financial position. S&P says Council’s financial position has been strengthened by the combined effect of increased revenue, tighter control of operating costs and the transfer of water activities to Tiaki Wai.
It expects continued delivery of Council’s financial strategy, together with lower capital expenditure requirements following the water transfer, to further strengthen Council’s position.
Chief Executive Kate Thomson says the upgrade provides independent recognition of the financial progress Council has made.
“We have made some difficult decisions over the past few years to control costs, prioritise investment and rebuild our financial resilience. This assessment shows that the discipline of the financial strategy is delivering the desired results,” she says.
“Those decisions have been about putting Council in a stronger position to best serve our community into the future.
“There is still more work to do, but greater financial resilience means we can plan with greater confidence, invest responsibly and continue delivering the infrastructure and services our community relies on.”
Council’s 2026-27 Annual Plan continues the financial direction established through the 2024-34 Long Term Plan, with a focus on controlling costs, prioritising investment and maintaining financial discipline. This work enabled Council to reduce the planned average rates increase for 2026–27 from 13.63% to 9.90%.
The transfer of drinking water, wastewater and stormwater services to Tiaki Wai from 1 July 2026 has also strengthened Council’s credit profile, with around 40% of Council’s outstanding debt transferring to the new water organisation.
S&P expects Council’s financial position to continue strengthening over the coming years, with lower debt and improved operating results. The positive outlook means there is potential for a further rating upgrade if Council continues to follow the financial strategy.
Read more here: Upper Hutt City Council Ratings Raised To ‘A+/A-1’ On Improving Fiscal Performance; Outlook Positive
Source: Upper Hutt City Council
10/10/26
