The international bond credit rating firm Moody’s Investors Service released a report this week reaffirming the City of Toronto’s credit rating of Aa1 with a stable outlook. An Aa1 rating is one level below Moody’s highest rating of Aaa.
The rating was based on Toronto’s large, diversified economy and broad tax base, continued strong year-end operating results, sound governance and prudent fiscal planning, as well as a healthy liquidity profile. The stable rating outlook reflects the firm’s view that the City will continue to show strong operating outcomes and maintain high debt affordability.
Moody’s report also acknowledges challenges faced by the City, such as a backlog of deferred capital spending and a growing population combined with limited revenue growth. However, it notes that the City’s debt burden is comparable to highly rated Canadian and international municipal peers.
Quotes
“Toronto is the economic engine for Ontario and Canada and an important participant in global markets. This rating is a testament to our sensible financial stewardship. It also demonstrates our continued financial stability and why it is so important that we stay the course on our responsible budgeting for the good of our city and our residents.”
– Toronto Mayor John Tory
“The City of Toronto has continued to invest in services that are important to residents while making prudent decisions for long-term financial health.”
– Councillor Gary Crawford (Ward 20 Scarborough Southwest), Budget Committee Chair
Toronto is Canada’s largest city, the fourth largest in North America, and home to a diverse population of more than 2.9 million people. It is a global centre for business, finance, arts and culture and is consistently ranked one of the world’s most livable cities. For information on non-emergency City services and programs, Toronto residents, businesses and visitors can visit http://www.toronto.ca, call 311, 24 hours a day, 7 days a week, or follow us on Twitter at http://www.twitter.com/cityoftoronto, on Instagram at http://www.instagram.com/cityofto or on Facebook at http://www.facebook.com/cityofto.