This report does not constitute a rating action. Overview Credit context and assumptions Base-case expectations New Zealand’s institutional framework settings remain strong. We expect Tasman's deficits after capital accounts to narrow to less than 10% of total revenue on larger rate increases and moderating capital expenditure (capex). Tasman's robust economic profile and experienced management team continue to support our ratings on the council. Debt burden to stabilize as operating margins strengthen and capex increases moderate. Continuing sound liquidity, with support from prefunding strategy. Larger general rate increases than in the past, including a 9.9% increase in fiscal 2027 (year ending June 30), as well as tighter control of operating costs will keep operating margins high. We forecast operating margins for
