News Release
August 17, 2021

Moody’s Investors Service, an international bond credit rating firm, has reaffirmed the City of Toronto’s credit rating of Aa1 with a stable outlook.

The Aa1 rating stems from Toronto’s economic diversity and importance, which provides access to a broad tax base and high levels of investments as one of the world’s most dynamic business capitals. The stable outlook is the result of Moody’s expectation that the City’s credit profile will remain resilient to near-term operating pressures. In addition, several other factors were considered, namely; managed and predictable increases in debt levels, continued debt affordability, and overall debt levels that are in line with peers.

According to Moody’s, the affirmation of the Aa1 ratings reflects Toronto’s strong governance framework and sound fiscal management. The report cites Toronto’s track record of positive operating outcomes and most revenue sources are protected from market events, including the COVID-19 pandemic. The City’s credit ratings also reflect relatively high liquidity/cash reserves, conservative debt policies and low debt burden, as well as consistently positive operating results.

Moody’s also notes that the City’s own expense mitigation initiatives, coupled with financial support from the provincial and federal governments to offset the financial impacts of the COVID-19 pandemic, helped the City to achieve a balanced budget in 2020.

Maintaining a high-quality credit rating provides access to lower long-term borrowing costs for investments in infrastructure such as water, wastewater, transit, roads and affordable housing. This ensures Toronto’s services remain affordable and sustainable for both residents and businesses, now and in the future.

The City’s current credit ratings are:

  • Moody’s Investors Services – Aa1 (Stable) (2002 to Present)
  • S&P Global Ratings – AA (Stable) (2001 to Present)
  • DBRS Morningstar – AA (Stable) (2002 to Present)


“This outlook is a vote of confidence by the market in Toronto’s prudent strategy for weathering the COVID-19 pandemic’s extraordinary impacts on the City’s finances – that is, continuing the City’s own cost containment efforts, coupled with strong intergovernmental partnerships and pandemic financial supports from the Federal and Provincial government, which has allowed us to continue providing essential, frontline services while balancing our budget.”

– Mayor John Tory

”I would like to thank everyone for their commitment to achieving this excellent credit rating. As an important participant in global financial markets, we will continue to work hard to make responsible decisions as we work towards making Toronto one of the most livable cities around the world.”

– Councillor Gary Crawford (Ward 36 Scarborough Southwest), Chair of the Budget Committee

Toronto is home to more than 2.9 million people whose diversity and experiences make this great city Canada’s leading economic engine and one of the world’s most diverse and livable cities. As the fourth largest city in North America, Toronto is a global leader in technology, finance, film, music, culture and innovation, and consistently places at the top of international rankings due to investments championed by its government, residents and businesses. For more information visit the City’s website or follow us on Twitter, Instagram or Facebook.

Media Relations