City of Guelph Still Gets an AA

It was a big talking point in the last election about Guelph's credit rating - mostly how a double A is good but a triple A is better. Well, despite financial hiccups, Guelph's Standard & Poor's remains a double A. here's the City's press release:

April 14, 2011 - Standard & Poor’s Ratings Services has confirmed that the City of Guelph has maintained its ’AA’ credit rating again this year. The rating reflects Standard & Poor’s Ratings Services’ view that the City has a solid economic base, manageable debt, and good operating performance.

"Council’s strong debt and reserve management policies are having their intended effect, producing a continued excellent credit rating for our municipality," says Mayor Karen Farbridge.

The City’s Chief Financial Officer Margaret Neubauer adds, "This rating is good news for Guelph as the economy continues to recover,"

Standard and Poor’s believes the expenditures are manageable and the City’s debt will remain under control even with last year’s increase in capital expenditures. Standard & Poor’s noted the benefit to Guelph of $45 million in federal and provincial stimulus funding to assist with the maintenance and repair of the city’s infrastructure. The City of Guelph is committed to a disciplined and integrated long-term approach to capital planning and continues to adhere to a long-term financial plan guided by debt and reserve management policies.

This ’AA’ rating means the City can secure lower interest rates when issuing debt to finance large capital expenditures from recently constructed facilities, resulting in significant savings to the municipality.

Standard & Poor’s also expects Guelph to benefit from the increasingly diverse economies in Kitchener, Waterloo and Cambridge as the region evolves from a traditional concentration in manufacturing to a technology and service-based economy, and that the arrival of GO train service in 2011 will further integrate the City’s economy into the surrounding area.