The ratings on Horowhenua District Council reflect the extremely predictable and supportive institutional framework within New Zealand for local and regional councils, plus our view of the council's strong financial management, budgetary flexibility and liquidity, and its very low contingent liabilities. In our view, offsetting these strengths is the council's weak budgetary performance, reflecting large after-capital expenditure deficits that have contributed to Horowhenua's very high debt burden. Its economy is average compared to peers. We perceive the institutional framework within which New Zealand local governments operate as being one of the strongest and most predictable globally. The New Zealand local government system promotes a strong management culture and fiscal discipline among New Zealand councils. This provides a source of credit
