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, partially 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. The council's financial management is strong and supporting it is New Zealand's institutional framework within which the country's local governments operate. The framework promotes a strong management culture and fiscal discipline among New Zealand councils. Tempering our view of the council's management strength is what
