City of Greater Sudbury Receives AA Credit Rating for Second Consecutive Year
Jun 18, 2019
The City of Greater Sudbury is pleased to announce that Standard and Poor’s (S&P) Global Ratings has once again issued the municipality an AA credit rating with a stable outlook.
This credit rating is a neutral, third-party assessment of the financial health of the City that considers a number of factors, including economy and growth, and the municipality’s financial management. The rating influences the interest rate paid by the City on any debt it takes on, and signals financial strength to private sector partners and senior orders of government.
“Our economy is performing incredibly well and this announcement is a great indication of the growth we're experiencing," said Mayor Brian Bigger. "The AA credit rating reinforces the confidence we have to continue to invest in our community through large projects and infrastructure renewal, while ensuring the responsible use of taxpayer dollars.”
S&P’s findings indicate that while the City’s debt will grow as a result of capital investments, it will be temporary and remain manageable. S&P noted the City’s prudent financial management policies are led by a stable and well-qualified management team. The stable outlook reflects the expectation that, in the next two years, the City’s after-capital debt will remain less than 5% of total revenues, on average, and the tax-supported debt burden will remain modest.
“This credit rating reinforces, once again, that we continue to be on a path of financial sustainability,” said Ward 7 Councillor Mike Jakubo, Chair of the Finance and Administration Committee. “City Council, with the support of staff, remains committed to making sound budgetary decisions that have the best interests of the community top of mind.”
S&P is a world-renowned financial services company that offers credit ratings, data analysis and equity research to both the private and public sectors. The company’s research emphasizes transparency and assists investors in making educated decisions. S&P has a history in the financial sector that dates back more than 150 years.
“S&P’s analysis reflects confidence in Council’s direction,” said City of Greater Sudbury CAO Ed Archer. “This strong credit rating signals positive expectations for our economy and offers reassurance that the municipality’s service delivery plans are both affordable and realistic.”
The full report from S&P is available at www.greatersudbury.ca/creditrating.