The stable outlook acknowledges Council’s decision to transfer water services into a joint organisation with Western Bay of Plenty District Council. This will result in the Council having less debt and a better financial position relative to our income
Mayor Mahé Drysdaye says the change reflects increasing confidence in Tauranga’s financial direction and the steps being taken to manage the city’s growth and infrastructure investment.
“This shift from a negative to a stable outlook is an encouraging signal that Tauranga is moving in the right direction,” Mayor Mahé says.
“It reflects the disciplined work underway to strengthen our finances, prioritise investment, and deliver the infrastructure our growing city needs.”
S&P previously revised Tauranga’s outlook to negative in October 2024 amid concerns about rising deficits and debt linked to significant capital investment and growth pressures.
The latest update indicates those pressures are now being better managed, improving confidence in the Council’s financial trajectory.
Mayor Mahé says the improved outlook is particularly important as Tauranga continues to invest heavily in transport, water and community infrastructure.
“We’re a high-growth city and that comes with real challenges. What this update shows is that we’re balancing those demands with responsible financial management.”
The ‘A+’ long-term rating continues to place Tauranga City Council among highly rated local authorities, supporting access to competitive borrowing and helping minimise costs for ratepayers.
“A strong credit profile means we can continue to invest in Tauranga while keeping costs as low as possible for our community,” Mayor Mahé says.
S&P’s assessment of New Zealand’s local government sector has highlighted broader pressures from rising capital investment and debt across councils.
Despite this, Tauranga’s revised outlook suggests increasing confidence in its ability to manage those sector-wide challenges.
Mayor Mahé says the Council will remain focused on maintaining momentum.
“We know there is more work ahead, but this is a clear sign we’re on the right track. We’ll continue to make prudent decisions to ensure Tauranga remains financially strong and well positioned for the future.”
Note to editor: S&P Global is an independent global credit rating agency that use a structured methodology covering economy, finances, debt, and governance. Their ratings are actively monitored and regularly reviewed. S&P Global assign a letter rating (AAA → D) indicating the likelihood the borrower will repay debt on time.