10 Dec 2013

Dunedin council's credit rating now stable

6:12 am on 10 December 2013

A credit ratings agency has lifted its warning about the Dunedin City Council's finances.

In 2012, Standard & Poor's analysts put the South Island council on a potentially costly negative outlook, warning it might not meet its financial targets because it is carrying debts of more than $600 million.

The agency also warned its rating was threatened by an Auditor-General's investigation of land purchases by council-owned company Delta.

Standard & Poor's has now revised the council's outlook to stable.

The agency says Dunedin's financial management is very positive and its budgeting has improved significantly since last year.

It says it does not expect the Auditor-General's report to be significantly negative.