City of Greater Sudbury Maintains AA+ Credit Rating for 2023

For the second consecutive year, Standard & Poor’s (S&P) Global Ratings has reaffirmed the City of Greater Sudbury’s credit rating as AA+ with a stable outlook, one of the agency’s top ratings. This marks the sixth consecutive year the City has received a rating of AA with a stable outlook or higher. 

The credit rating is an assessment of the municipality’s financial health based on factors such as historic financial performance, policies, economic growth and long-term plans. It influences the interest rate paid on any new debt the City takes on, such as the financing required for asset renewal, or for initiatives that support growth and economic activity throughout the municipality.

“This latest update from S&P is a good sign that we are on the right track. We are well-positioned to continue making solid, sustainable and strategic investment decisions that maintain economic capacity and investment readiness,” said Greater Sudbury Mayor Paul Lefebvre. “Our transition to multi-year budgeting will be an additional tool to guide responsible service planning and deliver positive results for everyone in our community.”

The S&P report indicates that Greater Sudbury’s rating is bolstered by strong financial management practices and prudent and conservative policies. While aging infrastructure will continue to require higher capital investments, the City is expected to maintain a modest debt burden with no additional borrowing in the next several years. 

The stable outlook reflects an expectation that over the next two years, a healthy mining sector and growing immigration, aided by programs like the Rural and Northern Immigration Pilot Program, will help expand Greater Sudbury’s economy. Although the mining sector and a strong demand for minerals remain a major contributor to the economy, the report notes that the city’s large public sector is helping diversify the local economy from its historical dependence on nickel mining.

“I am pleased to see this reaffirmation of our AA+ credit rating,” said Ward 9 Councillor Deb McIntosh, Chair of the Finance and Administration Committee. “City Council, with the support of staff, remains committed to making sound decisions through our budgeting process to ensure our plans sustain our strong and stable financial condition.”

“S&P’s analysis is positive news that reflects confidence in Council’s direction and positive expectations for our local economy,” said Ed Archer, City of Greater Sudbury Chief Administrative Officer. “Investors and residents should view this strong credit rating as a sign that the corporation is committed to delivering service delivery plans that are effective, affordable and realistic.”

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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