August 5, 2020
International credit rating agency Standard & Poor’s (S&P) has maintained the City of Edmonton’s credit score at AA for 2020, the same level as in 2019, despite the impacts of the COVID-19 pandemic on City finances.
“We are very pleased that S&P has noticed our efforts to maintain healthy financial levels through COVID-19 and reflected that in our credit rating,” said Mary Persson, Chief Financial Officer. “We have made many difficult decisions to manage costs during the course of the pandemic, including temporary layoffs, so that we can come out of this with a stable financial picture and the ability to relaunch and reimagine our city.”
“We expect management will continue to make prudent fiscal decisions, allowing [the City] to preserve healthy operating results and remain on track with its large capital plan,” S&P said in its report. “We believe that Edmonton’s prudent financial management and cost-containment efforts will help to mitigate the direct fiscal impacts stemming from the pandemic and maintain healthy liquidity levels.”
“The S&P credit rating confirms that the City benefits from strong professional management and appropriate budgeting and financial management processes,” added Dr. Joseph Doucet, Dean of the University of Alberta School of Business. “S&P highlights the relatively good financial situation for the City, while also noting risks associated with the potential for weaker than expected economic recovery. This also underpins the continued need for effective cost management.”