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May 17, 2012
City of Toronto maintains stable credit rating for global markets
The international bond credit rating firm Moody's Investors Service has reaffirmed the City of Toronto's credit rating of Aa1 with a stable outlook for the 10th consecutive year.

The rating confirms that City bonds represent excellent value based upon the City's positive operating results, its fiscal discipline, and its diverse and strong local economy.

"This rating and report shows that the City is on track to building a sustainable, affordable and well-managed city," said Budget Committee Chair Mike Del Grande (Ward 39 Scarborough-Agincourt). "Despite this past year of many challenges and achievements, our efforts to find expenditure savings and/or increased revenue must continue in order to secure a permanent solution to the City's structural deficit and deliver the best value to taxpayers."

"Toronto's rating relative to other Canadian municipalities reflects a low debt burden and high levels of liquidity, balanced by operating budget challenges typically not experienced elsewhere," was noted in a report from Moody's on May 16. "The high investment-grade rating also reflects a large and diversified economy, which remains a source of credit strength, providing access to a broad tax base."

Also included in the report is a statement on how the City's credit rating can be upgraded by Moody's.

"Continued fiscal discipline, including a permanent solution to the existing operating budget pressures, along with a continued strengthening in financial position, could exert upward pressure on Toronto's rating," the report notes. "A loss of fiscal discipline leading to a significant increase in the city's debt burden could apply downward pressure on the city's rating."

On an annual basis, credit rating agencies assess the City's financial condition by comparing it with other cities and regions in quality of management, strength of economy, level of reserves, condition of assets and debt levels. The agencies provide ratings to global investors and are the main factor in investment decisions.

"The City of Toronto is recognized as an important participant in global financial markets," said Deputy City Manager and Chief Financial Officer Cam Weldon. "The maintenance of a high quality credit rating enables the City to borrow at a lower cost and offer its debt to a wider market. The rating means that the City has a strong ability to make payments on its debt now and in the future."

The City's current credit ratings are:
• Aa1 - Moody's (one level below AAA)
• AA - Standard and Poor's (two levels below AAA)
• AA - DBRS (two levels below AAA)

For more information and to view the Moody's report, visit:

Toronto is Canada's largest city and sixth largest government, and home to a diverse population of about 2.7 million people. Toronto's government is dedicated to delivering customer service excellence, creating a transparent and accountable government, reducing the size and cost of government and building a transportation city. For information on non-emergency City services and programs, Toronto residents, businesses and visitors can dial 311, 24 hours a day, 7 days a week.

Media Contact
George Christopoulos
Press Secretary, Office of the Mayor

Wynna Brown
Manager, Media Relations and Issues Management

Cindy Bromley
Manager, Finance Communications



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