On Monday this week the Council made a very significant announcement which I’m keen to highlight to you.
Aberdeen City Council has become the first local authority in Scotland to be assigned an issuer credit rating, a step which will allow us to consider innovative funding mechanisms, including the potential to raise funds on the debt capital markets.
Whilst more information on our plans will be shared soon, Monday’s announcement gives a great opportunity to reflect on what it means for the Council.
The rating, set at Aa2 and just one level below that of the United Kingdom’s sovereign rating, has been assigned by Moody’s Investors Service – a very well established and respected name in global finance. Moody’s undertook a very thorough process of assessment and risk analysis which tested our financial management and corporate governance systems. Confirmation we’ve been successful in achieving the Aa2 rating is an independent verification of the great work being done throughout the Council to set and maintain the very highest standards.
I’m extremely appreciative of the contribution of all who have played a part in this in so many different ways, not least those who have been at the centre of the work required to achieve the credit rating in recent weeks and months. Its been a fantastic team effort.
As you may have seen in the media coverage following the announcement, Moody’s made a number of observations and said their decisions reflected Aberdeen City Council’s “strong institutional framework” as well as a “strong track record of operating performance”. Further details can be found in the media release accompanying the announcement which is accessible from this link.
In short, this announcement is something we should all be proud of. It represents another important step as we continue on our Shaping Aberdeen journey and I look forward to continuing on that path with you.