2015-06-01 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                            1 JUNE 2015


Very Weak         A local government with a limited capacity to meet its financial commitments in the
                  short and medium-term, and a very limited capacity long-term. It has a record of
                  reporting significant operating deficits. It is highly unlikely to be able to address its
                  operating deficits, manage unforeseen financial shocks and any adverse changes in
                  its business without the need for structural reform and major revenue and/or expense
                  adjustments. The expense adjustments are likely to result in significant changes to
                  the range and/or quality of services offered and it may need the assistance from
                  higher levels of government. It will have difficulty in managing its core business risks.

Distressed        A local government with a very limited capacity to meet its short-term financial
                  commitments and no capacity to meet its medium to long-term financial
                  commitments. It has a record of reporting significant operating deficits. To be able to
                  address its operating deficits, meet its medium and long-term obligations, manage
                  unforeseen financial shocks and any adverse changes in its business, major revenue
                  and expense adjustments and structural reform will be required. The local
                  government is unlikely to have the capacity to manage core business risks and may
                  need assistance from higher levels of government.



Outlooks

A ratings outlook generally focuses on the potential movement in an entity’s rating in the short
term (i.e less than 24 months). Outlooks may be positive, neutral or negative.

Positive           As a result of a foreseeable event or circumstance occurring, there is the potential
                   for enhancement/deterioration in the local government’s capacity to meet its
                   financial commitments (short and/or long-term) and resultant change in its rating.
                   However, it does not necessarily indicate that a rating change may be forthcoming.

Neutral            There are no known foreseeable events that would have a direct impact on the local
                   government’s capacity to meet its financial commitments. It may be possible for a
                   rating upgrade or downgrade to occur from a neutral outlook, if such an event or
                   circumstance warranted as such.

Developing         A developing outlook is where a current situation exists that could have a significant
                   direct impact on the financial sustainability of the local government, but the impact
                   of that situation is uncertain.




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