AAA Credit Rating Stands: “Strong Economy & Exceptional Liquidity”

International bond rating agency Standard & Poor’s Global Ratings (S&P) has again reaffirmed the City of Saskatoon’s ‘AAA’/Stable credit rating.

“The stable outlook reflects S&P’s expectations that Saskatoon is well positioned to benefit from a very strong economy,” says His Worship Mayor Charlie Clark. “Along with our ability to pay for programs and services, S&P says City Council has maintained a strong budgetary performance, and kept debt low.”

Every year, S&P reviews the City’s finances and delivers a rating in a report based on that study.

The bond rater says even though “a significant decline in commodity prices has dampened Saskatoon’s economic performance,” the City’s solid economic accomplishment has lessened the impact.

 “This is very encouraging news,” says Chief Financial Officer Kerry Tarasoff. “As it has for many, many years, the S&P rating underlines our managerial performance with prudent financial policies, robust budget documents and borrowing plans.”

The S&P report also notes the City’s historically stable budgetary performance and it outlines a healthy financial picture for the immediate future.

“We expect the City will continue to generate robust operating surpluses relative to those of its peers,” the report says.

The agency again points to the City’s culture of transparency and disclosure backed with “good” audited annual financial statements as other key reasons to maintain the rating.

The City has received the ‘AAA’/Stable credit rating every year for more than a decade allowing the City to borrow money at lower interest rates.

View the full January 2017 Report from S&P Global on saskatoon.ca.