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Standard & Poor’s Reaffirms City’s A+ Stable Credit Rating


June 8, 2011 – Standard & Poor’s Credit Rating Service has reaffirmed Thunder Bay’s A+ stable credit rating on the basis of robust liquidity, budgetary performance and moderate debt.

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 because a good rating allows a municipality to borrow money at competitive interest rates and to pass on the lower costs to taxpayers.

In its May 2011 rationale, Standard & Poor’s said: “The city’s credit quality has benefited from liquidity levels that are very high and comparable with that of more highly rated domestic and international peers.”

Thunder Bay’s diversification into mining was also regarded as a positive factor by Standard & Poor’s. Although the mining sector can be volatile, it is expected to contribute to the City’s growth prospects in the near-to-medium term. Gains were also noted in diversifying the economy into knowledge-based sectors such as biomedicine, research and health care.

The City’s long-term financial overview, which includes projected capital expenditures and debt issuance, also contributed to the results. Adhering to the overview’s financial guiding principles allows the City to make decisions that will foster a healthy and sustainable community.

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