Coun­cil’s credit rat­ing ‘stable’

Evening Express (City Final) - - News -

A NEW re­port on Aberdeen’s credit rat­ing has found a “stable out­look” – but warned of po­ten­tial chal­lenges ahead. Aberdeen made his­tory in 2016 by be­com­ing the first Scot­tish coun­cil to be as­signed a rat­ing so it could launch a £370 mil­lion bond is­sue on the stock ex­change. Much of the cash has been put into the fi­nanc­ing of the £333m con­fer­ence fa­cil­ity TECA, un­der con­struc­tion in Bucks­burn and ex­pected to open next sum­mer. Ini­tially they were given a Aa2 rat­ing from the Moody’s agency, which was down­graded to Aa3, in line with a drop in the UK’S over­all credit rat­ing from Aa1 to Aa2. A re­port to yes­ter­day’s city growth com­mit­tee said the au­thor­ity had again re­ceived the Aa3 rat­ing with “a stable out­look” fol­low­ing a re­view by Moody’s. How­ever, the re­port warns of risks from tak­ing on fur­ther debt or po­lit­i­cal changes. Fac­tors could in­clude a fail­ure to de­liver cap­i­tal projects as planned or wors­en­ing fi­nan­cial per­for­mance. Aberdeen City Coun­cil coleader Dou­glas Lums­den said: “This re­port is tes­ta­ment to the hard work of all those who con­tinue to make Aberdeen a re­silient and grow­ing econ­omy.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.