August 17, 2017
For the sixth consecutive year, international credit rating agency Standard & Poor’s has awarded the City of Edmonton a score of AA+. This rating is the second-highest possible, and reflects the City’s strong fiscal fundamentals.
“We are very pleased to see Edmonton’s responsible stewardship of taxpayer dollars reflected in this rating,” said Todd Burge, Chief Financial Officer at the City of Edmonton. “We know citizens work hard for their money, and we are just as prudent about using it wisely to provide the services and infrastructure people need and use everyday.”
The 2017 report acknowledges that Edmonton continues to manage its finances well by:
- Very strong financial management with an experienced team qualified to enact effective policies and respond to external risks.
- A robust set of financial policies and annual financial statements that are comprehensive, audited, and unqualified.
- Holding an exceptional liquidity position.
- Providing transparent disclosure of information with detailed multi-year budgets.
- Incorporating formal risk-management strategies and policies into business plans.
Standard and Poor’s revised its yearly outlook from stable to negative and cautions that Edmonton could face a possible downgrade in its credit rating at some point in the next two years if the City increases its debt significantly.
The City’s infrastructure spending occurs while construction costs and interest rates remain low, providing high value for taxpayers and directly supporting our local economy, and helps create jobs in Edmonton. “Our city has grown rapidly over the past few years, and continues to grow, which requires an investment in infrastructure,” said Burge. “We have demonstrated over the past six years, holding a AA+ credit rating, we are prudent at using resources wisely, and we will continue to make responsible investments and build smartly for our future,” he added.
Standard & Poor’s notes that, like other Canadian municipalities, Edmonton benefits from “a very predictable and well-balanced local and regional government framework that has demonstrated a high degree of institutional stability”. They also note that they could revise its outlook back to stable in the next year or two depending on the City’s capital funding and operating revenues.