Cornwall Council has again been awarded a Triple A credit rating - the highest possible level - as a result of its sound financial management, placing the authority above many of the UK’s leading banks and other financial institutions in terms of credit worthiness.
The Council has been re-awarded the Triple A rating by Moody’s, one of the world’s biggest rating agencies, following its detailed review of the authority’s finances. The rating means that the Council’s financial management, budgetary control and resilience have been judged as among the best in the world.
Their report concludes that the Council’s stable cash flow position and robust savings plan to deal with the loss of Government funding means that the authority is in a sound financial position.
“This is very good news for the Council and taxpayers in Cornwall” said Jim Currie, the Council’s portfolio holder for corporate resources. “With the problems facing the world’s economy and the debt problems facing countries like Greece and Italy, it has never been more important to have a good credit rating”.
“We have been focusing on ensuring financial control and stability and this rating demonstrates prudent and responsible management of our finances. These are tough times financially but we will maintain our resolve.”
Only four other local authorities currently have a Triple A rating from Moody’s – the Royal Borough of Kensington and Chelsea, Greater London Authority, Woking Borough Council and Birmingham City Council.
The rating means that the Council will find it easier and cheaper to raise funds from the money markets if it needs to finance big capital projects. It will also benefit from lower rates of interest than would be awarded to other borrowers because investors will know that the Council’s financial situation is stable and on firm grounds. .