Standard and Poor’s upgrades City’s credit rating to AA|
WINNIPEG - JANUARY 14, 2003 - Standard and Poor’s Ratings Services has raised the City of Winnipeg’s credit rating to ‘AA’ from ‘AA-‘, with a stable outlook.
According to Standard and Poor’s, the improved credit rating “reflects the significant reduction in the city’s total debt that has occurred with the recent sale of Winnipeg Hydro to Manitoba Hydro.”
“This upgrade of our credit rating is solid evidence of the City’s strengthening financial position,” said Mayor Glen Murray. “We are experiencing steady economic growth, solid budgetary performances, and have achieved a significant reduction in our overall debt, both tax- and self-supported.”
Commenting on the credit rating upgrade, Councillor Bill Clement, Chairperson of the City’s Standing Committee on Fiscal Issues, said that the Hydro sale agreement “provides the City with a guaranteed annual revenue stream of $25 million this year, becoming $16 million after nine years. It also allows us to avoid considerable capital funding costs as well as the risks inherent in the business of electricity generation. This upgrade indicates that we are on solid financial footing.”
Standard and Poor’s rating reflects its outlook that the City will continue to strengthen its cash and investment holdings and to reduce its outstanding debt.
Credit rating agencies provide an objective third party perspective on the financial management of various levels of government and organizations. Credit rating reviews are one of the most significant factors used by the capital markets to determine the cost of borrowing.
Last update: 01.02.2004
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