LGFA Credit Ratings Affirmed by S&P Global Ratings AA+/AAA (Stable Outlook) with Improved Stand-Alone Credit Profile
NZX Announcement 09 September 2024
LGFA CREDIT RATINGS AFFIRMED BY S&P GLOBAL RATINGS at AA+/AAA (STABLE OUTLOOK) WITH IMPROVED STAND-ALONE CREDIT PROFILE.
On 9 September 2024, S&P Global Ratings (“S&P”) affirmed their long-term ratings on New Zealand Local Government Funding Agency (“LGFA”) at 'AA+' foreign-currency and 'AAA' local-currency and affirmed the short-term ratings at 'A-1+'.
All credit ratings have a stable outlook.
S&P has also revised upwards the LGFA Stand Alone Credit Profile (“SACP”) from AA- to AA+ reflecting improved access to capital markets, dilution of borrower concentration and a growing capital base.
S&P note that LGFA has a dominant market position as a source of financing for councils with strong risk management and an extremely high likelihood that extraordinary financial support from the New Zealand Government would be forthcoming in a stress scenario.
A copy of the S&P Research Update is available below
