Uh-oh Lenny’s loose spending has grabbed attention

Standard and Poor’s are none too pleased with Len Brown’s free spending ways:

Ratings On Auckland Council Placed On Creditwatch Negative, On Increasing Debt Levels

Press Release by Standard and Poors MMS  at 3:06 pm, 14 Nov 2011

Standard & Poor’s Ratings Services said today that it had placed its ‘AA’ longterm issuer credit rating on New Zealand’s Auckland City Council on CreditWatch with negative implications.

“The rating action follows our discussions with Auckland Council which highlighted their plans to significantly increase capital expenditure, particularly in the area of transport,” said Standard & Poor’s credit analyst Anna Hughes. “At this stage, it is unclear as to how much of this capital expenditure will be funded using debt; however, current revenue and capital-expenditure projections suggest that the council’s debt levels will exceed 170% of operating revenues by fiscal 2013 and reach 200% by fiscal 2015.”

“We expect to resolve the CreditWatch during the next 90 days as the council finalizes its draft 2012 Long Term Plan. Any rating action would not likely exceed one notch.”


Of course Len Brown is in China at the moment looking at Chinese tunnel building machinery…he may as well come home now.

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