Central government policy churn drags down local government credit ratings

The back and forth over three waters policy is one of the things making council finances unpredictable. (Image: NZME)

Tue, 04 Mar 2025

S&P Global Ratings says its recent downgrading of the institutional framework for local council borrowing is “a big deal”, and both central and local governments are to blame.It told BusinessDesk that successive Governments had created an unpredictable policy environment, especially with the back and forth on three waters and the Resource Management Act (RMA).It also pointed to a structural issue that had been building in local government finances, which the central Government’s approach to reform was too “piecemeal&...

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