City Receives AA Credit Rating for Fourth Consecutive Year

The City of Greater Sudbury has once again received a AA credit rating with a stable outlook from Standard & Poor’s (S&P) Global Ratings. 

The rating is one of the highest obtainable and has been issued to the City each year since 2018.

The credit rating is an assessment of the financial health of the municipality based on factors such as historic financial performance, policies, economic growth and long-term plans. It influences the interest rate paid on any debt the City takes on, allowing for investments in assets and initiatives that support growth and economic activity throughout the municipality.

“I’m proud to see that we are consistently presented with a AA credit rating,” said Greater Sudbury Mayor Brian Bigger. “This is an important indication that we are on the right track, making the best use of our resources, and are well positioned to make sound investments that contribute to the future of our community and to economic growth.”

The stable outlook reflects an expectation that over the next two years, the mining and public sectors will help the economy recover from the impacts of the COVID-19 pandemic. Economic growth will rebound in 2021 and continue into 2022 as pandemic-related restrictions ease. 

“We are seeing that the policies and strategies adopted by Council continue to result in success for our community,” said Ward 7 Councillor and Chair of the Finance and Administration Committee Mike Jakubo. “Informed, transparent and strategic budget decisions, result in positive returns for our residents.”

The S&P report refers to strong financial management and prudent and conservative policies contributing to the stable financial state of the municipality. It states that the City provides transparent, easy-to-access disclosure of pertinent information and prepares robust operating and capital budgets.

This strong financial position enables the City to continue to move forward on the strategic priorities of City Council, while maintaining economic capacity and investment readiness, and competitiveness as a hub for education, healthcare and employment in northern Ontario.

“Consistently receiving a positive credit rating reflects the organization’s commitment to long-term financial sustainability,” said City of Greater Sudbury Chief Administrative Officer Ed Archer. “It is evidence that City Council’s decisions not only follow its financial plan, but they also produce outcomes that support community progress.”

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.

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