Standard and Poors have downgraded Auckland City's credit rating one notch to AA- from AA today. The outlook on these ratings is stable. The ratings change is due to the credit quality of the proposed SuperCity merger resulting in the new Auckland Council. "Auckland's need to deliver larger infrastructure projects and the resulting debt increases somewhat offset these strengths, and ultimately led to the lowering of the rating to "˜AA-'," said Anna Hughes, S&P credit analyst. "The rating could be reviewed either up or down depending on the policies of the newly merged council and the consolidated forecasts it produces once it begins operating on Nov. 1, 2010." All debt will become the responsibility of the new Auckland Council from Nov. 1, 2010. S&P said that Auckland Council's net debt could peak between 100% and 140% of operating revenue.
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