July 19, 2023
The City of Edmonton’s AA credit rating was affirmed by credit rating agency Standard and Poor’s (S&P), with an improved outlook from stable to positive.
The City’s outlook has improved due to an expanding economy and prudent fiscal management that will allow the City to fund and advance its capital program. “Although the debt burden will increase to fund capital needs and remains high compared with that of peers, we believe the city has the resources to accommodate it," S&P said in its report.
“We are pleased that S&P has affirmed the City’s strong fiscal management and believe it reflects our responsible stewardship of public money,” said Stacey Padbury, Deputy City Manager, Financial and Corporate Services. “This credit rating is important because it confirms that the City has the capacity to meet its capital commitments, including important infrastructure projects like city facilities, roads, bridges and LRT expansion that Edmontonians rely on.”
“The city has a robust set of financial policies and a well-documented financial plan. In addition, it provides transparent disclosure of pertinent information,” said S&P. The report also outlined that the updated positive outlook means there is a one-in-three chance that S&P could raise the rating in the next two years based on its expectation that, “[T]he city will successfully manage the capital plan to achieve sustainable budgetary results.”
