Moody’s Investors Services reconfirmed a Triple-A rating—the international credit agency’s highest rating—and a stable outlook for the City of Ottawa in a report released Monday.
“The City of Ottawa’s Aaa debt rating and stable outlook is based on a history, and continued practice, of prudent financial management and stable economic base,” said Mayor Jim Watson in a press release, which also noted that Ottawa’s rating is at the higher end of Canadian municipalities, whose ratings typically range between Aaa and Aa2.
“The Moody’s report recognizes the City’s adherence to a long-term capital plan to ensure that debt levels and debt servicing costs remain modest,” said City Treasurer Marian Simulik.
This rating “is a significant benefit in issuing City debentures to domestic and international investors and helps to obtain the lowest possible interest rates,” said city councillor Diane Holmes in a statement, noting that the only credit challenge is if significant infrastructure needs lead to issuing incremental debt above what is already anticipated.
The report is based on financial data and projections from 2011.
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