Western Bay retains strong credit rating

Western Bay of Plenty District Council has once again proven its financial strength, with global credit rating agency Standard & Poor’s reaffirming Council’s AA credit rating.

This marks the seventh consecutive year Council has held this high rating – a clear sign that Western Bay continues to manage its finances well, even amid economic challenges and major infrastructure investment.

Council’s General Manager Corporate Services, Adele Henderson, says the rating reflects Council’s steady approach in a time of uncertainty.

“In a time when many councils across the country are facing significant financial strain, we’re proud to be recognised for keeping a steady hand on the tiller,” says Adele.

“Standard & Poor’s has again acknowledged our strong operating surpluses and credible, well-established fiscal processes. We’ve worked hard to maintain these standards even as we deliver major investment in water, wastewater, and transport to support our growing population.”

The 2025 report notes Council’s capital expenditure is peaking – with around $100 million expected annually over the next three years – but also highlights Western Bay’s strong budgetary flexibility and financial management.

S&P has maintained a negative outlook, pointing to “downside risks to the council’s fiscal and liquidity positions over the next two years.”

“We acknowledge the negative outlook and take that feedback seriously,” says Adele. “It’s a reminder that as we continue delivering major capital projects, we must remain vigilant with how we manage debt and expenditure. That’s something Council is absolutely committed to.”

Mayor James Denyer says the rating confirms Council’s commitment to doing right by its communities.

“Our community expects us to invest in the future while living within our means,” says Mayor Denyer. “This rating shows we’re doing just that – delivering for today and preparing for tomorrow, with a firm focus on financial sustainability.”

S&P’s report highlights Western Bay’s strong local economy, underpinned by a resilient horticultural and agricultural sector, and the wider Bay of Plenty’s continued growth. The rating provides assurance that Council remains in a strong position to keep delivering essential services and infrastructure, while managing its finances responsibly.