It has been assessed as a "high mid-range" risk profile by credit agency Fitch Ratings, with the company stating it has a lower chance of financial difficulties over the next five years.
The council’s income strength and flexibility was also assessed as stronger, with its expenditure adjustability or flexibility of spending listed as stronger.
The expenditure profile, or control over spending growth was assessed as mid-range, meaning the council had moderate control over this.
Gore District Council chief executive Debbie Lascelles said, in a statement, it was a good result which showed an upturn in the council’s finances.
"All of this shows we’re attaining real financial growth and sustainability, which means a better outlook for the district."
The report, Ms Lascelles said, would help future debt funding if and when the council required it.
"This shows we’re gaining a reputation as being a solid economic guardian for our community.
"Fitch’s credit rating has a direct impact on the council’s cost of borrowing and achieving an AA rating means less additional borrowing costs."
The report also stated Gore had strong liquid and liability strength, meaning it had easy-access to money and owed money, due to a lack of complex debt structures and risky investments.
The council at present owes $58.7m, accrued over the past few years, with further borrowing expected to curb rate rises.
Ms Lascelles stated acquiring this credit rating was a key assumption in the debt funding models laid out in the plan.
Council chief financial manager Lornae Straith said, in a statement, the credit rating was given after consideration of both the debt and the assets the council had under its belt.
The debt, although large, was still dwarfed by the cost and lifespan of infrastructure such as roads, water and wastewater treatment plants.
"If you think of it like a mortgage, the council owes $58.7m to an external provider (LGFA), however the total assets are $578m.
"Debt represents 10.2% of the total asset base of the council, with the remainder being the council’s equity."
