Research Update: Tasman District Council 'AA/A-1+' Ratings Affirmed; Outlook Stable

Construction of the Waimea Community Dam commenced in March 2019. We expect that Tasman District Council's investments in the dam will result in moderate after-capital-account deficits during the next two years. Contingent liability risks have risen. This is in part because the council has provided a NZ$29 million guarantee over a loan to Waimea Water Ltd., the company responsible for constructing the dam. Our ratings on Tasman continue to be supported by its robust financial management, high level of liquidity, and the country's excellent institutional settings. We are affirming our 'AA/A-1+' long- and short-term issuer credit ratings on Tasman and maintaining our stable outlook. On Oct. 31, 2019, S&P Global Ratings affirmed its 'AA/A-1+' long- and short-term issuer credit ratings

...- Construction of the Waimea Community Dam commenced in March 2019. We expect that Tasman District Council's investments in the dam will result in moderate after-capital-account deficits during the next two years. - Contingent liability risks have risen. This is in part because the council has provided a NZ$29 million guarantee over a loan to Waimea Water Ltd., the company responsible for constructing the dam. - Our ratings on Tasman continue to be supported by its robust financial management, high level of liquidity, and the country's excellent institutional settings. - We are affirming our '##/A-1+' long- and short-term issuer credit ratings on Tasman and maintaining our stable outlook....

Research Update