CITY’S ECONOMY “VERY STRONG” & DEBT BURDEN “VERY LOW”: REPORT

The Standing Policy Committee on Finance today received a report reaffirming the City’s AAA/Stable Outlook credit rating. The report also includes some key factors international bond rating agency Standard & Poor’s (S & P) applies to award such a rating.

The Administration addressed questions from the committee about whether S & P had cautioned the City in its rating report.

“Our citizens need to know this is a very positive piece of news,” says Chief Financial Officer Kerry Tarasoff. “Despite a perception S & P may have cautioned the City over its debt load, the agency has not issued any warning.”

“We have a triple-A rating with a stable outlook which is a fantastic achievement and consistent with our past ratings,” Tarasoff says.

The report outlines S & P’s Ratings Score Snapshot in which the bond raters say Saskatoon has a very strong economy, very strong budgetary flexibility, strong budgetary performance, strong financial management, “exceptional” liquidity with a debt burden rating of “very low.”

Standard & Poor’s rating notes: “The City will maintain exceptional levels of liquidity to meet debt service requirements.”

“This means we will continue to manage our finances very well with healthy reserves and it will help build the infrastructure our growing city needs.” Tarasoff says.

The City of Saskatoon has maintained its AAA/Stable credit rating for more than a decade.

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