The Council’s credit rating was withdrawn amid debts of almost £2bn

Ratings agency Moody’s has withdrawn its credit rating on the heavily indebted Warrington council.

The board informed bondholders on Monday that Moody’s decision was due to the board’s “inability to ensure that its financial statements are audited by external auditors.”

This Labour-led local authority has faced intense scrutiny over several investments it has made.

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In a report last month by the Financial Times, it emerged that the Cheshire council failed to provide key information to its auditor, Grant Thornton, hampering the firm’s ability to carry out a thorough review of the council’s financial records.

A government-appointed inspector began probing the board in May to determine whether it meets legal requirements, following an earlier review that criticized its “very large and uniquely complex” investment strategy fueled by loans.

Auditors have just completed their examination of the council’s accounts for the year ending 31 March 2019, leaving Warrington significantly behind on its statutory reporting obligations.

The council cited sector-wide problems in completing recent audits, attributing the delays to a lack of available auditors with the necessary capacity and expertise.

On Monday, the Council also announced its intention to obtain an alternative credit rating from another EU-recognised agency.

Warrington Borough Council’s debts rose as it pursued investments in a portfolio worth around £1.5bn, which included stakes in now-defunct energy company Together Energy.

The firm also allegedly made loans to e-commerce entrepreneur Matthew Molding to finance a real estate deal for his THG venture.

Their investments also include several supermarkets in Greater Manchester and solar farms in York and East Yorkshire.

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