“Strong financial management a key credit strength:” City retains ‘AAA’/Stable credit rating
The City of Saskatoon has again received a favourable endorsement from S&P Global Rating Services, which today reconfirmed the City’s ‘AAA’ credit rating with a “stable” outlook.
“We’re pleased and excited to receive our ‘AAA’ rating today,” says Kerry Tarasoff, Chief Financial Officer. “This year’s introduction of the City’s first Multi-Year Business Plan & Budget Planning process has supported our fiscal transparency, and our ongoing commitment to improve our financial management practices as we plan for Saskatoon’s future.”
Noting Saskatoon’s diverse economy and observing the City’s “strong operating surpluses and financial management,” S&P Global Rating Services today reaffirmed ‘AAA’ long-term issuer credit and senior unsecured debt ratings on the City with an outlook that is ‘stable’.
Key points within the February 4, 2020 S&P Ratings Direct® Report are:
- The City’s management team is described as “experienced and qualified to effectively enact fiscal policies and respond to external risks.”
- “Management accountability is strong and financial policies are prudent.”
- The City’s has a “lengthy track record of passing budgets before the start of the fiscal year with minimal variations from budgeted revenues.”
- With “exceptional levels of liquidity, (the City’s) debt burden is expected to remain around current low levels of just under 40% of consolidated revenues.”
- Saskatoon’s strong economy has supported “budgetary balances leading to large operating surpluses more than sufficient to fund (the City’s) capital agenda.”
“Maintaining the City’s ‘AAA’ rating is important as it supports our confidence in our budgetary decisions for Saskatoon’s bright future with continued and steady growth,” Tarasoff says. “We remain confident in our ability to minimize debt as we undertake long-term planning for infrastructure to support our great quality of life in Saskatoon.”
The full report entitled “City of Saskatoon Ratings Affirmed At ‘AAA’; Outlook Remains Stable” is available on the City’s website saskatoon.ca.