New Zealand's largest local body, Auckland Council, says it is untroubled by a possible downgrade of its credit rating.
Standard & Poor's says projected debt levels associated with transport projects could prompt a one notch downgrade from the third-highest level, AA.
The move would reverse an upgrade awarded when Auckland's eight local bodies were amalgamated last year.
Council chief financial officer Andrew McKenzie says avoiding a downgrade would require the council to make big profits each year.
He says councils do not operate like businesses and pay off major borrowings largely through depreciation, which makes a downgrade at some point almost inevitable.
He says the possible ratings drop is in a context where the Government and other local bodies have had similar downgrades.
