The Regional Municipality of York continues to receive high grades from two of the top-ranked credit rating agencies.
Both Moody’s Investor Service and S&P Global Ratings have re-affirmed their credit ratings for the debt issued by the region, according to an update received by regional council Nov. 21.
S&P Global Ratings re-affirmed its AA+ rating, revising the outlook to positive from stable. The positive outlook reflects the possibility that within the next two years, the rating could be triple A, according to the Region.
"S&P’s upgrade of the outlook reflects their view that the Region’s commitment to fiscal sustainability and improved capital planning may result in solid budgetary surpluses and reduced debt issuances in the future," Laura Mirabella, commissioner of finance and treasurer, said in a report.
Moody’s maintained the Region's Aaa rating with stable outlook.
Both rating agencies commented favourably on the Region’s strong financial management, and S & P also commented favourably on the strong economy, high liquidity balances and prudent fiscal management, Mirabella added.
However, Moody's reiterated that the Region’s debt burden remains “elevated” in comparison to other Aaa-rated Canadian municipalities.
"Given planned expansions of the regional transportation network and a proposed extension of the Yonge subway line, Moody’s expects that York’s capital spending will remain elevated," Mirabella noted.
The ratings contribute to the Region’s ability to access capital markets.
