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Credit ratings

Thunder Bay Maintains AA+ Credit Rating for Fourth Consecutive Year

Strategic Insights

— 1 min read

The City of Thunder Bay has reinforced its status as a financially sound municipality, with S&P Global Ratings reaffirming its AA+ credit rating for the fourth consecutive year. This rating reflects the city's prudent financial management, low debt burden, and robust liquidity position. Despite near-term inflationary challenges and elevated capital spending, S&P Global Ratings expects Thunder Bay to maintain overall sound financial results and sustain a low debt burden in the next two years.

Key Takeaways:

  • S&P Global Ratings has reaffirmed the City of Thunder Bay's AA+ credit rating for the fourth consecutive year, citing the city's sound financial management practices and low debt burden.
  • The stable outlook reflects the expectation that Thunder Bay will maintain overall sound financial results, generating near-balanced after-capital results on average, despite near-term inflationary challenges and elevated capital spending.
  • The city's AA+ credit rating reflects its discipline in budgeting, sound financial practices, and successful execution of strategic and fiscal plans.
  • Commissioner of Corporate Services and City Treasurer, Keri Greaves, views the reaffirmation of the credit rating as validation that the city's financial position remains sound.
  • City Manager John Collin notes that the rating reflects the city's strong financial stewardship, council's continued support, and capacity to foster sustainable growth.
  • The city's financial position is expected to be sustained through the next two years, despite near-term economic challenges.
  • S&P Global Ratings expects Thunder Bay to maintain a low debt burden and a robust liquidity position.

Statistics:

  • The City of Thunder Bay's credit rating has been reaffirmed at AA+ for four consecutive years.
  • S&P Global Ratings expects the city to generate near-balanced after-capital results on average over the next two years.
  • The city's debt burden is expected to remain low, and its liquidity position is expected to remain strong.
  • The AA+ credit rating reflects the city's disciplined budgeting and sound financial practices.
  • The city's financial results are expected to remain sound, despite near-term inflationary challenges and elevated capital spending.
  • The stable outlook reflects S&P Global Ratings' expectation that Thunder Bay will maintain its financial position over the next two years.

Sources:

  • S&P Global Ratings news release, no date listed.
  • City of Thunder Bay news release, no date listed.

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