City of Edmonton Credit Rating Remains “Very Strong”
June 17, 2011
AA+ rating reflects good management, stable outlook
International credit rating agency Standard & Poor’s has reaffirmed its AA+ credit rating for the City of Edmonton.
The rating is unchanged from last year, indicating the City retains its “very strong” credit rating. The designation is just one notch below the highest rating that S&P awards.
“The City and all citizens can be proud of this rating,” says Lorna Rosen, the City’s Chief Financial Officer and Treasurer. “It is international recognition that we manage our revenues, investment holdings and spending plans in a sustainable and professional way as we advance citizen priorities.”
S&P’s June 16 announcement notes: ‘We base the affirmation (of the City’s credit rating) on the City’s strong liquidity . . . the stable outlook reflects our expectations that Edmonton’s debt will remain manageable and partially supported by senior-government funding.”
Edmonton’s economy appears strong, thanks in part to the public-sector presence and despite exposure to volatility within the energy sector, S&P analysts conclude. “The rating also reflects our view of the City’s exceptional cash and liquid investment balances, despite declining from record high levels because of growth related capital expenditures, and its adequate operating margins.”