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As it did in 2018, Greater Sudbury has received a AA credit rating with a stable outlook from Standard and Poor’s (S&P) global ratings.
In a news release Wednesday, the city said the rating is a “neutral, third-party assessment” of the state of the city's financial health. The rating is based on such factors as economy, growth and 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, the release said.
“Our economy is performing incredibly well and this announcement is a great indication of the growth we're experiencing," Mayor Brian Bigger is quoted as saying in the release. "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.”
The stable outlook reflects the expectation that, in the next two years, the city’s after-capital debt will remain less than five per cent 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,” Ward 7 Coun. Mike Jakubo — who chairs the finance committee — is quoted as saying.
“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.”
CAO Ed Archer called S&P's credit rating for Greater Sudbury a vote of confidence for council initiatives.
“S&P’s analysis reflects confidence in council’s direction,” City of Greater Sudbury CAO Ed Archer said in the release. “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 GreaterSudbury.ca/CreditRating.
