Both Moody’s Investors Service and S&P Global Ratings (S&P) have reaffirmed the Regional Municipality of York’s AAA credit rating this year, which is the highest rating awarded for investment-grade debt and a strong capacity to repay investors.
“Superior credit ratings allow the region to access capital market financing at the lowest possible cost,” York Region chairman and CEO Wayne Emmerson said in a news release. “Included as part of our fiscal strategy, maintaining strong and stable credit ratings positions us well to support both current and future generations of York Region residents.”
Moody’s Investors Service affirmed York Region’s credit rating at ‘AAA stable’ for the 25th consecutive year. This rating reflects excellent liquidity with elevated levels of cash and reserves to provide ample coverage of debt and expenses. The rating also highlights strong governance, solid fiscal results and high annual operating margins.
S&P upheld York Region’s credit rating at AAA with a stable outlook based on the region’s diverse and wealthy economy, fostering fiscal stability, solid budgetary performance and prudent financial management. The stable outlook reflects expectations the region will maintain strong operating surpluses and that debt will continue to decline.
Both credit rating agencies also noted York Region’s elevated debt burden associated with large-scale capital spending plans to build water and wastewater infrastructure, roads and the Yonge North Subway extension. The agencies expect the region will continue to carefully manage this debt. Earlier this month, York Region successfully placed $100 million of debt to enable growth-related infrastructure projects across the region.
“Maintaining strong credit ratings is a key component of York Region’s fiscal strategy and helps ensure the region achieves financial stability and supports inter-generational equity,” said King Township Mayor Steve Pellegrini, chair of the region’s finance and administration.
Historic credit ratings, annual reports and more information about investing in York Region are available at york.ca/CreditRatings.
