• Home
  • About
  • Subscribe
  • Conference
  • Events Calendar
  • Webcast151
  • MOTB
  • Log In
  • Register

Room 151

  • Treasury
  • Technical
  • Funding
  • Resources
  • LGPS
  • Development
  • 151 News
  • Blogs
    • David Green
    • Agent 151
    • Dan Bates
    • Richard Harbord
    • Stephen Sheen
    • James Bevan
    • Steve Bishop
    • Cllr John Clancy
    • David Crum
    • Graham Liddell
    • Ian O’Donnell
    • Jackie Shute
  • Interviews

AAA for Wandsworth from Moody’s & Fitch

0
  • by Editor
  • in Funding · Recent Posts
  • — 15 Nov, 2011

Lending money to the London Borough of Wansdworth is a safer bet than lending it to the USA. That, at least, is the conclusion of Moody’s and Fitch Ratings who both announced a AAA credit rating for the London borough yesterday.

Moody’s cited the “very strong institutional framework governing the UK local authority sector” along with the “borough’s good operating performance and the absence of a structural deficit” as well as, “a very high likelihood of extraordinary support from the UK government in case of need” as their rationale for the AAA rating.

While the implied support of the UK Government seems a reasonable assumption to make where local authorities are concerned one would have to question why some of the recently downgraded UK banks, who hold vast sums of local authority deposits on their books, would not receive similar support.

In its assessment Fitch said: “The ratings reflect Wandsworth’s almost debt free position, solid record of
conservative budgeting, prudent investment policies and its financial precaution.”

It continued: “Wandsworth’s budgetary planning is prudently managed…..Comparing both operating revenue and expenditure year-on-year, Wandsworth achieved significant savings in the years when the council faced a decline in revenues.”

The council’s cabinet member for finance and corporate resources Cllr Guy Senior said: “This rating is a
clear demonstration of the strong and prudent financial management that has been a hallmark of this council for many years.

“Having a Triple A rating opens up new revenue streams to the council should we need them. If we have to raise funds for big capital investment projects like the extension of the Northern Line to Nine Elms then we would be able to at the best rates of interest.”

Estate agents of Nine Elms will be almost as happy as certain City institutions.

Share

You may also like...

  • €130bn Greek rescue package: key details & Eurogroup statement €130bn Greek rescue package: key details & Eurogroup statement 21 Feb, 2012
  • Councils take aim at Pickles’ patronising pamphlet Councils take aim at Pickles’ patronising pamphlet 12 Mar, 2013
  • Harbord and Shute join the Room151 blog team Harbord and Shute join the Room151 blog team 19 Sep, 2012
  • Council enters hotel business in investor-backed income strip deal Council enters hotel business in investor-backed income strip deal 20 Mar, 2019

Leave a Reply Cancel reply

You must be logged in to post a comment.

  • Register to become a Room151 user

  • Latest tweets

    Room151 7 hours ago

    Budget 2021: A missed opportunity while bidding could prove a strain: The chancellor delivered the budget this week giving councils the opportunity to bid for funds but offering no resolution to long-term issues such as business rates retention, adult… dlvr.it/Rv2llw pic.twitter.com/8RwHboQAnL

    Room151 1 day ago

    ESG presents LGPS with investment innovation opportunities: Sponsored interview: Dawn Turner of Quinbrook talks about the opportunities in environmental, social and governance issues for LGPS. LGPS has the opportunity to innovate in its investment… dlvr.it/RtyK3Y pic.twitter.com/swAksOAXYQ

    Room151 1 day ago

    The opportunity in the UK renewables and grid support market as UK looks to ‘build back better’: Sponsored article: Mark Burrows and Rosalind Smith-Maxwell examine infrastructure opportunities emerging from efforts to meet the UK’s net zero target.… dlvr.it/RtyJyz pic.twitter.com/BQCYQZQpi2

    Room151 2 days ago

    McCloud consultation ends with “greater security” for LGPS members: The government’s consultation on LGPS, Catherine McFadyen argues, closes with a decision which avoids forcing members to make choices that could be “financially disadvantageous”. But… dlvr.it/RtxhL6

    Room151 3 days ago

    Could 2021 be less eventful for LGPS, please?: Barry McKay looks at McCloud, the 95k exit cap, employer risk and investments to see what to expect for LGPS in the coming year. On one hand, 2020 was in[...] dlvr.it/RtslFd pic.twitter.com/H4debuPmGG

    Room151 3 days ago

    Fixed income investing can help target both financial and sustainability targets: Sponsored article: Adam Whiteley offers a guide to the ESG benefits of investing in fixed income. Investing responsibly in fixed income can be crucial for local government… dlvr.it/Rtsl9h pic.twitter.com/khJL1xNfGh

    Room151 4 days ago

    Going beyond the standard metrics for climate change: Sponsored article: With climate change an investment imperative and an imminent reporting requirement, Ritesh Bamania argues UK pension schemes should look beyond today’s standard metrics. With… dlvr.it/RtnpLS pic.twitter.com/6ABaFHyS9I

    Room151 5 days ago

    LGPS webinar: Governance the key to TCFD implementation: LGPS funds have been warned that governance is it at the here of Whitehall plans to impose a new climate reporting regime on pension funds. In January the Department for[...] dlvr.it/RtjwNq pic.twitter.com/YMiMdmRyzU

    Room151 5 days ago

    LGPS webinar: Central bank management of bond purchasing could affect all asset classes: When the government debt caused by the pandemic is eventually tackled there may be a huge impact on assets of all classes, according to a leading investment expert… dlvr.it/RtjwJx pic.twitter.com/7v8K5vMYHo

    Room151 5 days ago

    #LGPS readers...what to do about #bonds? room151.co.uk/blogs/lgps-web… @BrunelPP 's new CIO, David Vickers tackles a problematic area #centralbanks #assetallocation #fixedincome pic.twitter.com/yUJr0azbKv

    Room151 5 days ago

    LGPS Challenges: Balancing Realpolitik and responsible investment: Elizabeth M. Carey warns of the perils of an ESG echo chamber as countries outside the West continue to invest in fossil fuels. Anyone working with the LGPS probably feels[...] dlvr.it/RtjMpq pic.twitter.com/MykIYxuYri

    Room151 1 week ago

    How can local government ‘build back better’?: Beverley Gower-Jones looks at the options for driving small business entrepreneurship in clean technologies. Innovation is essential for local authorities to save money and reduce emissions, it is the… dlvr.it/RtT3nS pic.twitter.com/bSMB6OG70t

    Room151 1 week ago

    Helen Randall: Spelthorne report places spotlight on ‘controls’: Fresh criticism of Spelthorne Council raises the question of what “good” controls look like when negotiating a property deal. Spelthorne Council’s continuing debacle over property… dlvr.it/RtSPhy pic.twitter.com/9uCOJgBcH6

    Room151 1 week ago

    Step-out strategies: Hitting the sweet spot between liquidity and ultra-short duration: Sponsored article: Jemma Clee describes how an ultra-short duration strategy can help local authorities enhance returns. Despite the expectation of a low, and… dlvr.it/RtSPZb pic.twitter.com/pdXPpv5lcN

  • Categories

    • 151 News
    • Agent 151
    • Blogs
    • Chris Buss
    • Cllr John Clancy
    • Dan Bates
    • David Crum
    • David Green
    • Development
    • Forum
    • Funding
    • Graham Liddell
    • Ian O'Donnell
    • Interviews
    • Jackie Shute
    • James Bevan
    • Jobs
    • LGPSi
    • Mark Finnegan
    • Recent Posts
    • Resources
    • Richard Harbord
    • Stephen Fitzgerald
    • Stephen Sheen
    • Steve Bishop
    • Technical
    • Treasury
    • Uncategorized
  • Archives

    • 2021
    • 2020
    • 2019
    • 2018
    • 2017
    • 2016
    • 2015
    • 2014
    • 2013
    • 2012
    • 2011
  • Previous story The case against bunds
  • Next story How do money market funds stay triple-A?

© Copyright 2021 Room 151. Typegrid Theme by WPBandit.