Rockhampton Regional Council credit review results revealed
Rockhampton Regional Council was recently subject to a credit review and received a good outcome, with a moderate rating and a neutral outlook.
The credit review was undertaken by the Queensland Treasury Corporation (QTC) and was based on information up to November 30, 2020.
The credit review evaluated council’s current financial policy, ongoing financial viability, borrowing capacity for individual projects and overall businesses, debt funding requirements and financial targets and strategies to achieve those targets.
Council’s borrowings are forecast at $55m for the current year.
The credit review stated council had “stable financial performance, adequate debt serviceability and expected improvement in leverage metrics over the 10 year forecast period”.
QTC also noted that “while debt levels are expected to remain high over the forecast period and serviceability is forecast to dip marginally below the QTC preferred benchmark, both metrics are expected to make a recovery through steady recurrent
The QTC supported council’s cost saving initiatives which helped “deliver a balanced operating performance over the next five years”, particularly as some previous projects and expenses had missed their targets.
The credit review recommended council continued to undertake regular budget reviews to manage any COVID-19 effects.
Council is subject to a credit review every two years.
The rating has remained unchanged from the previous two credit reviews for 2018/19 and 2014/15 financial years.