We forecast a large economic shock in New Zealand during 2021 because of the COVID-19 pandemic. We expect Horowhenua District Council will incur large after-capital account deficits and rising debt levels during the next few years. The council continues to address infrastructure renewals, upgrades, and past deferrals. Its management and New Zealand's institutional settings support our ratings, while the district's economic profile and liquidity temper these strengths. We are affirming our 'A+' long-term and 'A-1' short-term issuer credit ratings on Horowhenua. The outlook on the long-term ratings is stable. On Aug. 19, 2020, S&P Global Ratings affirmed its 'A+' long-term foreign- and local-currency and 'A-1' short-term issuer credit ratings on Horowhenua District Council, a New Zealand local government. The outlook
