No change to Hamilton City Council's credit rating  

S&P Global has maintained Hamilton City Council's 'A' credit rating and stable outlook, with the costs of growth continuing to be a driving factor behind the result.

S&P's report (issued 19 November 2025) highlights growth as both a positive for the city's economy, and key factor in Council's financial position.

"Hamilton's long-term economic and growth prospects are very strong. Strong population growth should help to sustain Hamilton's economic strength," the report said.

"This growth has led [central government] policymakers to classify Hamilton as a high-growth council, expecting future population growth to outpace the national average.

"As a high-growth council, Hamilton borrows heavily to invest in critical infrastructure to address growth pressures, particularly greenfield projects for private housing development."

Council's net debt in the 2024/25 Annual Report is $992 million. Of this, around 65% is borrowing invested in growth infrastructure. Approximately 30% has gone towards increased levels of service, leaving 5% for asset renewals and to cover operating revenue shortfalls.

Council's Chief Financial Officer, Gary Connolly, said S&P's report echoes the financial challenges the organisation has been facing for more than two years.

"The expectation from central government to deliver the essential infrastructure for housing, the level of debt that creates, and the 'spike' in interest costs on that debt due to global interest rates rises – these pressures are far greater for growth councils like us. There's no getting around the fact it costs more to fund and run a high-growth city."

The A rating is considered 'strong' under the Reserve Bank of New Zealand's rating framework, and indicates Council's ability to make timely repayments on its borrowing.