The City of Guelph is boasting another strong credit rating.
S&P Global Ratings announced Friday Guelph remains at AA+ with stable outlook for the fifth year in a row.
“This is an independent, third-party confirmation of the City’s solid financial position and practices. It sends a strong signal that our municipal finances are in excellent shape,” said Mayor Cam Guthrie in a statement.
(City of Guelph)
S&P said the rating reflects our city’s “healthy liquidity, robust budgetary performance, and very low debt burden.”
The stable outlook reflects the expectation that the City will maintain its liquidity position, the tax supported debt burden will remain less than 30 per cent of its operating revenues and the City will generate moderate after capital surpluses for the next two years.
The City said its low debt burden will lead to low borrowing rates when they need to take on external debt.
“In addition to our sound financial policies, the City’s strategic action plan guides our annual budget, which is a realistic plan for our future,” said Tara Baker, city treasurer and general manager of Finance, in a statement provided to CJOY News. “Financial planning for an organization of this size takes time and a coordinated effort from staff across the City. This credit rating is a testament to continuous good work.”