S&P Global, an international credit rating agency, has reaffirmed the City of Toronto’s AA credit rating with a positive outlook.
In reaffirming the City’s credit rating, S&P Global cited Toronto’s deep and diversified economy, and Council and senior leadership’s prudent financial management as the foundation of the City’s credit strength.
This is the City’s second credit rating affirmation from S&P Global this year and reflects the City’s prudent financial management, strong financial support from senior levels of government, and a deep and diversified economy – factors that have helped sustain its fiscal performance since the start of the pandemic.
Earlier this month, Moody’s Investors Service also reaffirmed the City’s Aa1 credit rating.
Despite the financial impact of the COVID-19 pandemic, the City continues to provide more than 150 services, many of which are available 24 hours a day, seven days a week. The City’s vast services keep neighborhoods safe and vibrant, encourage business growth and investments, make Toronto welcoming for residents and visitors, and contribute to social, economic and climate resilience.
A press release explain that maintaining a high-quality credit rating provides the City with access to lower long-term borrowing costs for infrastructure investments for communities such as affordable housing, community centres, roads, transit, wastewater and water. This ensures Toronto’s services for residents and businesses remain affordable and sustainable.