City's credit rating remains strong but agency urges caution

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An aerial view of Anthony Henday Drive and Terwillegar Drive in Ward 9.


Ryan Jackson / Postmedia

The City of Edmonton has scored a AA+ credit rating for the seventh consecutive year, but it is being warned it could face a downgrade if its capital plan increases debt burden.

International agency Standard & Poor issued the second-highest possible rating citing “gradual economic recovery, strong financial management, and predictable institutional framework” as reasons for its decision.

“Seven years of an AA+ rating is a notable achievement,” the city’s acting chief financial officer Stacey Padbury said in a statement.

“The City of Edmonton has maintained this solid rating through a robust set of financial policies and a well-documented financial plan, as well as transparent disclosure of pertinent information. Strong processes remain the key to balancing the city’s needs and resources while weathering recent economic challenges.”

Standard & Poor said the ratings outlook remains negative for 2018 and “that the city could face a downgrade to its credit rating in the future if the City of Edmonton’s capital plan puts sustained pressure on budgetary performance and increases debt burden.”

 



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August 12, 2018 |

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