Tasman District Council

This report does not constitute a rating action. Overview Credit context and assumptions Base-case expectations Sound and diversified economy, albeit hampered by a weaker demographic profile than peers. Growth in income from property rates underpins strong operating surpluses. Solid financial management, strong liquidity, and New Zealand?s excellent institutional settings support our ratings. After-capital deficits moderating as capital expenditure (capex) drops with near completion of Waimea Community Dam. This limits the rise in debt. Larger-than-historical increases in property rates and the completion of the Waimea Community Dam will assist in mitigating cost pressures from higher inflation. We expect Tasman District Council to post moderate after-capital-account deficits over the next few years. We updated our analysis through to fiscal 2026, following the

... and the completion of the Waimea Community Dam will assist in mitigating cost pressures from higher inflation. We expect Tasman District Council to post moderate after-capital-account deficits over the next few years. We updated our analysis through to fiscal 2026, following the release of the council's annual budget for fiscal 2023-2024. The general strength of the local economy and New Zealand's institutional settings provide for a reliable revenue basis that underpins our ratings. In our view, Tasman's financial management and liquidity coverage will continue to support its credit profile. Our base case excludes the potential effect of the former Labour government's proposed water reform. The reform program, as currently legislated, would take responsibility for drinking water, wastewater, and stormwater assets away from councils and amalgamate it in 10 new regional water service entities from mid-2024. The new Crown government could...

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