City of Toronto responds to credit rating upgrade by Moody's Investors Service|
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Finance - Moody's Investors Service today upgraded the City of Toronto's
long-term debt rating to Aa1 from Aa2. In making its assessment, Moody's
specifically highlighted the City's "strong fiscal performance in the face of
many organizational and financial challenges in recent years, combined with an
increased provincial presence in funding municipal infrastructure projects."
Moody's also credited the upgrade to Toronto's effective management of
amalgamation and maintenance of reserves, along with low relative debt burdens
and a highly diversified and resilient economy.
Shirley Hoy, Toronto's chief administrative officer, said, "This is great news
for the City and shows that we have been making the tough decisions to make
sure the taxpayers of Toronto are well served and that the City is well run.
However, we need a firm long-term commitment from both levels of government on
the necessary funding tools to again start building the city. We are very
pleased that Moody's has recognized that the City has met its many challenges
in a positive manner."
Joseph Pennachetti, the City's chief financial officer and treasurer, said, "An
Aa1 rating is extremely strong and places the City just one level below the
highest possible rating of Aaa. This upgrade will not only help lower our cost
of borrowing to support our capital works program, but also reflects an
independent organization's assessment of our financial strengths. Council and
staff have worked closely to enhance the budgetary process and have implemented
improved accountability and financial controls. We will continue to work on our
long-term debt and financial planning strategies in conjunction with Council,
the public, and the credit rating agencies."
Credit ratings provide indications to investors about the City's longer-term