Moody's releases report on City credit rating upgrade|
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Finance - Moody's Investors Service has released a report detailing the City of
Toronto's recent upgrade from Aa2 to Aa1, noting that the stable rating
reflects City management's commitment to maintaining fiscal discipline.
This new report also states that maintaining fiscal discipline along with
municipal infrastructure support from the higher levels of government could
favourably impact the City's credit rating in the medium term. Moody's
recognizes that the recent provincial decision to re-assume the financial
responsibility for the operation and maintenance of GO Transit is a step in
that direction and thereby has provided some immediate relief to the City's
operating and capital budgets.
The report points to the importance of accessing a new revenue source to lessen
municipal reliance on property taxes and provide more flexibility in budgeting.
"This confirms what we've been saying for years," said City of Toronto Budget
Chief, Councillor David Shiner. "Toronto needs both provincial and federal
levels of government at the table to keep Toronto, the economic engine of
Canada, running smoothly," said Councillor Shiner.
Moody's noted the financial groundwork that has been building over the last
several years, adding that the City's administration will need to "remain
vigilant" to maintain this strong fiscal performance. "It recognizes that new
budget process has been successful, through the efforts of staff and
Councillors working together for financial process improvements," said Joseph
Pennachetti, Toronto's Chief Financial Officer and Treasurer.
The City of Toronto's rating upgrade to Aa1 was announced by Moody's Investors
Service on September 26, 2002. The highest rating level is Aaa, one level above
the City's current rating position.