The international bond credit rating firm Moody’s Investors Service has reaffirmed the City of Toronto’s credit rating of Aa1 with a stable outlook. The rating action reflects Moody’s assessment of the macroeconomic and funding linkages between the Province of Ontario and its regional and local governments and government-related issuers.
“Toronto continues to be a solid investment in global markets,” said Mayor John Tory. “The City is on stable financial footing thanks to the good work of this City Council and our professional City staff. Over the last four budgets, we have limited property tax increases to at or below the rate of inflation while investing in important services that our residents expect and key initiatives that keep life in Toronto affordable.”
“Toronto’s economic size, diversity, and vitality provide for an increasing degree of fiscal independence from the Province and have ensured that the City’s credit rating remains strong,” said Councillor Gary Crawford (Ward 36 Scarborough Southwest), Chair of the Budget Committee. “I’m proud to be part of the steady leadership of Mayor Tory’s administration that has produced four balanced budgets and maintained our City’s excellent credit rating.”
The City of Toronto has AA/AA+ credit ratings that are backed by the most diversified economy in Canada which provides access to a broad and stable tax base. The City’s strong credit ratings are a reflection of its relatively high liquidity/cash reserves, conservative debt policies and low debt burden, as well as consistently positive operating results.
“The City of Toronto is recognized as an important participant in global financial markets,” said Interim Chief Financial Officer Joe Farag. “Maintaining a high quality credit rating will enable the City to continue to borrow at a lower cost and offer its debt to a wider market.”
The City’s current credit ratings are:
• Aa1 – Moody’s (one level below AAA)
• AA – Standard and Poor’s (two levels below AAA)
• AA – DBRS (two levels below AAA)
This news release is also available on the City’s website: https://bit.ly/2HorbTy
Toronto is Canada’s largest city, the fourth largest in North America, and home to a diverse population of about 2.8 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/TorontoComms, on Instagram at http://www.instagram.com/cityofto or on Facebook at http://www.facebook.com/cityofto.
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