2015-06-01 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                         1 JUNE 2015


                                                                                  ATTACHMENT 1

QTC’s Local Government Credit Rating and Outlook Definitions
Ratings

Very Strong   A local government with a very strong capacity to meet its financial commitments in
              the short, medium and long-term. It has a record of reporting operating surpluses and
              is highly likely to be able to manage major unforeseen financial shocks and any
              adverse changes in its business without revenue and/or expense adjustments. Its
              capacity to manage core business risks is very strong.

Strong        A local government with a strong capacity to meet its financial commitments in the
              short, medium and long-term. It generally has a record of operating surpluses and
              may occasionally report minor operating deficits. It is able to address its operating
              deficits, manage major unforeseen financial shocks and any adverse changes in its
              business, with minor revenue and/or expense adjustments. The expense adjustments
              are likely to result in only minor changes to the range of and/or quality of services
              offered. Its capacity to manage core business risks is strong.

Sound         A local government with an adequate capacity to meet its financial commitments in
              the short, medium and long-term. While it is likely that it may have a record of minor
              to moderate operating deficits, the local government is expected to regularly report
              operating surpluses. It is likely able to address its operating deficits, manage major
              unforeseen financial shocks and any adverse changes in its business, with minor or
              moderate revenue and/or expense adjustments. The expense adjustments are likely
              to result in some changes to the range of and/or quality of services offered. Its
              capacity to manage core business risks is sound.

Moderate      A local government with an adequate capacity to meet its financial commitments in
              the short to medium-term and an acceptable capacity in the long-term. While it has
              some record of reporting minor to moderate operating deficits, the local government
              may also have recently reported a significant operating deficit. It is likely able to
              address its operating deficits, manage unforeseen financial shocks and any adverse
              changes in its business, with moderate revenue and/or expense adjustments. The
              expense adjustments are likely to result in a number of changes to the range of
              and/or quality of services offered. Its capacity to manage core business risks is
              moderate.

Weak          A local government with an acceptable capacity to meet its financial commitments in
              the short to medium-term and a limited capacity in the long-term. It has a record of
              reporting moderate to significant operating deficits with a recent operating deficit
              being significant. It is unlikely to be able to address its operating deficits, manage
              unforeseen financial shocks, and any adverse changes in its business, without the
              need for significant revenue and/or expense adjustments. The expense adjustments
              would result in significant changes to the range of and/or quality of services offered. It
              may experience difficulty in managing core business risks.




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