The City of Peterborough Maintains ‘AA+’ Credit Rating
/The City of Peterborough has maintained an ‘AA+’ credit rating, citing the City’s “political and managerial commitment to disciplined fiscal policies” in its recently released Standard and Poor credit report announced Thursday.
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The ‘AA+’ rating is the second highest rating on the financial services company’s credit rating scale.
“Despite the current macroeconomic headwinds, we believe the City’s stable tax base will help Peterborough to maintain healthy budgetary performance,” says Standard and Poor, referencing the international and national economic conditions in a statement.
They referenced the City’s ability to internally finance most of its capital plan and use moderate debt issuance to fund the remainder.
Among the reasons and expectations for the City of Peterborough’s strong credit rating, Standard and Poor’s has cited:
Satisfactory financial management practices
The City’s political and managerial commitment to disciplined fiscal policies
An extremely predictable and supportive local and regional government framework that has demonstrated high institutional stability and evidence of systemic extraordinary support in times of financial distress
Municipalities have demonstrated a track record of strong budget results with debt burdens, on average, low compared with those of global peers and growth over time has been modest
Projection that the City will continue posting modest after-capital deficits of about 1.5 per cent of total revenues, on average, in 2020-2024
Liquidity will be a key strength.
