City of Greater Sudbury Maintains AA Credit Rating in 2020
Sep 23, 2020
For the third consecutive year, the City of Greater Sudbury has received an AA credit rating with a stable outlook from Standard & Poor’s (S&P) Global Ratings. This is one of the best ratings available.
The rating is an assessment of the financial health of the municipality that influences interest rates paid on debt issued by the City. It’s a sign of financial strength to private sector partners and senior levels of government. A number of factors are considered including economic growth and the municipality’s ability to effectively manage finances.
“This announcement by S&P reinforces our commitment to ensuring our financial sustainability, even when faced with additional pandemic-related pressures this year,” said Greater Sudbury Mayor Brian Bigger. “We know the next couple of years will be challenging, but our community should take comfort in knowing our financial outlook remains stable and we’ll continue to persevere.”
S&P’s findings note that even with the pandemic having impacts on the local economy, the municipality will recover gradually over the next two years with the tax supported debt burden expected to remain manageable.
“This credit rating is a direct result of the hard work achieved by City Council, and supported by staff, as we make financial decisions in the best interest of the community we serve,” said Ward 7 City Councillor Mike Jakubo, Chair of the Finance and Administration Committee. “Despite the short-term challenges, we remain committed to making sound decisions through our budgeting process to continue to lead our city toward a strong and stable financial future.”
“This is positive news that recognizes City Council’s focus on the corporation’s long-term financial plan and making financially sustainable service commitments,” said Ed Archer, City of Greater Sudbury Chief Administrative Officer. “Residents and investors should view this credit rating as a sign that the corporation is committed to delivering effective and affordable municipal services.”
S&P is a global 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.
The full report from S&P is available at www.greatersudbury.ca/creditrating.