The City of Calgary’s positive credit ratings reaffirmed by globally-recognized rating agencies
Standard & Poor’s Global Ratings (S&P) released its report this week reaffirming The City of Calgary’s AA+ long-term issuer credit rating and A-1+ short-term rating. DBRS Limited also recently reaffirmed our Issuer Rating and Long-Term Debt rating of AA (high), and the Commercial Paper rating at R-1 (high), with stable trends.
The global impacts of COVID-19 and ongoing weakness in energy markets are mentioned in both reports. But they go on to speak to how the strength of The City’s prudent fiscal management and responsiveness to economic challenges will ensure the impacts are short term and manageable. The report released by S&P states: “we believe that Calgary's prudent financial management and cost-containment efforts will help to mitigate the direct fiscal impacts stemming from the pandemic and to maintain robust liquidity levels. At the same time, Calgary's strong operating balance provides a solid foundation to support major capital spending over the next several years, including the Green Line light rail transit (LRT) project, limiting the need for significant debt and preserving the city's robust liquidity.”
After reviewing the reports, Carla Male, Chief Financial Officer, said: “I’m proud to work with a team of dedicated City employees that are focused on Calgary’s economic recovery and improving the lives of citizens. The continued positive ratings and outlooks reflects the sensible financial management achieved through careful decision-making and dedication of all City staff.”