Solid Performance, Sound Financial Management: ‘AAA’ Credit Rating Reconfirmed
The international rating agency S&P Global (formerly Standard and Poor’s Rating Services) has reconfirmed the City of Saskatoon’s ‘AAA’/Stable credit rating, based on the 2016 financial statements and operating results as well as the current outlook for Saskatoon.
“As a city and community we have worked hard through a slower economy to keep finances in order while building quality of life that continues to attract talent and investment,” says Mayor Charlie Clark.
“S&P Global’s reconfirmation of our ‘AAA’ credit rating and stable outlook is a testament to the hard work of many people. We will continue to work to build confidence in the future for all residents and our business community,” adds Mayor Clark.
S&P Global expects that the City’s “…creditworthiness will be largely unchanged because the City's budgetary performance will continue to be solid, debt burden will remain much less than 60% of operating revenues, and liquidity will remain healthy.”
The credit rating agency also notes “…that the city will continue to benefit from a supportive institutional framework, sound financial management, and a robust economy.”
“Receiving the ‘AAA’ credit rating provides the City with financial certainty and the budgetary flexibility necessary to maintain and add infrastructure,” says Chief Financial Officer Kerry Tarasoff. “Saskatoon is growing toward half a million people. We remain committed to balancing the City’s future needs with today’s financial realities.”
Every year, S&P Global reviews the City’s finances and delivers a rating in a report based on that study. 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.