Wellington's Municipal Office Building (the tall cream coloured building in the middle) sits next to the Town Hall (left) in Te Ngākau Civic Square. Photo: Supplied/ Wellington City Council
Credit ratings for two of the country's largest city councils have been downgraded because of weak financial positions and rising debt.
S&P Global Ratings has cut Wellington City Council (WCC) one notch - to AA from AA+, and the Hamilton City Council (HCC) has been lowered to A+ from AA-.
The credit agency says WCC's finances will be weak for the next three years because of rising costs, debt and a weakening financial outlook.
HCC had a similar outlook, with rising debts for capital projects leading to larger deficits.
A reduced rating points to higher borrowing costs.