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City Credit Rating Upgraded to ‘AA-’ from ‘A+’, Outlook Stable


June 27, 2013 – Standard & Poor’s has raised the City’s credit rating to ‘AA-’ from ‘A+’ on the basis of sustained and strong financial performance.

“This rating reflects the positive direction of our City,” said Carol Pollard, City Treasurer & General Manager – Finance & Corporate Service. “By employing prudent financial planning and adhering to financial principles the City is building a healthy and sustainable community.”

A city’s credit rating is used by investors and creditors to measure a municipality’s ability to meet its financial obligations. This is good news for residents, as a good rating allows a municipality to borrow money at competitive interest rates and pass on the lower costs to taxpayers.

In its June 2013 rationale, Standard & Poor’s noted the City’s robust liquidity, healthy budgetary performance, and moderate debt. The stable outlook reflects an expectation that the City will continue to produce healthy operating surpluses over the next two years.

Another factor in the credit rating upgrade was the fact that 20 per cent of the city’s workforce is employed by the public sector, giving the economy a very stable base. In its rationale, Standard & Poor’s also cited successful economic diversification into knowledge-based sectors including biomedicine, research, and health care.

The financial guiding principles support the City’s strategic objective of being one of the best-run cities in Canada.

More information is available on the City’s website: www.thunderbay.ca/performance.

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Contact: Carol Pollard, City Treasurer & General Manager – Finance & Corporate Service, 625-2241