Auckland Council nears borrowing cap via LGFA as local authorities flock to cheap debt

Tue, 28 Jun 2016

By Sophie Boot June 28 (BusinessDesk) - Auckland Council is nearing the limit on what it can borrow through the Local Government Funding Agency as low interest rates encourage local authorities to take on low-cost debt. Auckland Council yesterday deferred a bond sale, citing market volatility that has followed the UK's decision to exit the European Union. The LGFA has a covenant on the net debt-to-revenue ratio for the council of 250 percent, which it says is consistent with an A+ credit rating from Standard & Poor's. Auckland Council'...

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