“Strong economic fundamentals” support rating: City maintains ‘AAA’/Stable credit
The City of Saskatoon again received a positive endorsement from S&P Global Rating Services, which today reconfirmed the City’s ‘AAA’ credit rating.
“Of course we’re very encouraged with this rating,” says Clae Hack, Interim Chief Financial Officer. “The rating agency points to a ‘strong and diversified’ economy in our city, the fact we’ve kept debt ‘minimal’ and are able to pass budgets before the start of the fiscal year as benefits.”
Highlighting “sound financial management,” S&P today affirmed ‘AAA’ long-term issuer credit and senior unsecured debt ratings on the City with a “stable” outlook.
Key points within the August 26, 2019, S&P report are:
- Saskatoon is expected to “maintain a strong budgetary position over the next two years”
- Saskatoon’s creditworthiness reflects strong financial management
- Saskatoon’s “…management accountability is strong and financial policies are prudent.”
“As is always the case, the 'AAA' rating is important,” Hack says. “It provides that certainty for anyone looking to invest and create jobs in Saskatoon and it allows us at City Hall to plan for the growth that happens as a result.”
The City’s mid-year ‘AAA’/Stable credit rating affirmation comes as a result of S&P publishing updated methodology on July 15, 2019, for assigning ratings to local and regional governments outside of the United States. The intent of the changes is to:
- Better capture country and entity-specific nuances while continuing to reflect global calibration and comparisons;
- Streamline and simplify the criteria while maintaining its analytical robustness; and
- Allow analysts to tell a better credit story through the application of more flexible criteria while ensuring a consistent criteria application.
The mid-year ‘AAA’/Stable rating for the City report was reissued based on a cursory review using the new criteria as well as the most current information as of the date of the reissued report.
For more information, the report entitled “City of Saskatoon Ratings Affirmed at ‘AAA’; Outlook Remains Stable” is available on the City’s website saskatoon.ca.