Financial Performance & Credit Rating
UPDATE: January 19, 2023: S&P Global (S & P) has reaffirmed the City of Saskatoon’s credit rating as the highest rating possible, a ‘AAA’ credit rating with a “stable” outlook. The City has retained the ‘AAA’/Stable credit rating for twenty-one years since S&P first began affirming the City’s credit ratings in 2002.
Maintaining the top 'AAA' credit rating through continued impacts of the pandemic and global pressures is a testament to the City's strong financial management and adaptability.
S&P states rationale contributing to the City’s strong credit rating within January 19, 2023, S&P Global Ratings Direct® Report:
- The City's “strong and prudent financial management is a key credit strength” and “the City’s management team is experienced and qualified to effectively enact fiscal policies and respond to external risks.”
- The City “demonstrates good political and managerial strength with its lengthy track record of passing budgets with minimal variations from budgeted revenues and expenses.”
- S & P views “management accountability as strong and financial policies as prudent. Management’s disclosure and transparency are good, and the city prepares robust annual budget documents.”
- “The City prepares multi-year operating and capital budgets for subsequent years, as well as long-term capital and borrowing plans. We believe that this supports fiscal transparency and discipline.”
- The City maintains “exceptional liquidity” and “debt is supported by high operating margins, which over five years exceed total direct debt outstanding, highlighting the small and manageable debt burden.”
Having been affirmed with a “AAA”/Stable Outlook credit rating allows the City to borrow at the lowest possible interest rates as the City is seen as an organization that has an extremely strong capacity to meet financial commitments.
News Release January 19, 2023: City of Saskatoon maintains 21st consecutive ‘AAA’/Stable credit rating; reaffirmed by S&P Global Ratings
Receiving the 'AAA'/Stable credit rating essentially means that the City of Saskatoon can borrow money at lower rates, and is viewed by financial institutions as having virtually no-risk with respect to defaulting on credit.
Previous S&P Global Ratings Analysis Reports/Updates
S&P Global Ratings Research Update January 2021 "Prudent financial management practices will support the City of Saskatoon's creditworthiness"
S&P Global Ratings Research Update February 2020 "City of Saskatoon Ratings Affirmed at 'AAA'; Outlook Remains Stable"
S&P Global Ratings Research Update January 2019 AAA Report for Saskatoon
S&Plobal Ratings Research Update January 2018 AAA Report for Saskatoon