Aberdeen gets credit rating
Aberdeen City Council has become the first local authority in Scotland to be given a credit rating
Aberdeen City Council has become the first local authority in Scotland to be given a credit rating.
Moody’s has rated the Granite City Aa2 - just one level below the UK as a whole.
The local authority says it'll give them new funding mechanisms, including access to debt capital markets.
Moody’s Investors Service said its decision reflected Aberdeen City Council’s “strong institutional framework” as well as a “strong track record of operating performance” and added “the Council has demonstrated a solid financial record for the last five years maintaining a net surplus against budget for each year”. The Moody’s statement also noted Aberdeen’s “wealthy local economy, albeit dependent on key industries”.
Aberdeen City Council Leader Councillor Jennifer Laing said: “Being assigned a credit rating, a first for a Scottish local authority, is a vital step forward for us as we explore options to fund what is a comprehensive capital programme designed to support the city’s growth and diversification during a crucial period for Aberdeen.
“We are committed to investing in a bright and prosperous future for the people of Aberdeen and the businesses in our city, with transformation already well underway. Today’s announcement is another significant step towards realising our ambitions.”
It's hoped it'll help help the city fund big projects in the coming year - like the City Centre Masterplan.
Finance convener Councillor Willie Young said: “This process and our achievement in gaining an Aa2 credit rating serves as a very positive independent assessment of Aberdeen City Council’s stability and strength.
“It is a clear demonstration of confidence in the financial management and controls we have in place, which provide us with the solid foundations we need as we build for the future.”