Moody’s Investors Service, a leading provider of credit ratings, research and risk analysis, has affirmed the City of London’s Aaa credit rating and stable outlook, the highest rating possible.
In April, Moody’s changed the Province of Ontario’s credit outlook to negative from stable. Following the change in the Provincial rating outlook, Moody’s also conducted a review of municipalities across the province, including London.
Moody’s comments on the City’s fiscal plan and track record of generating positive financial results focused on the City’s ability to display strong governance and management practices including its multi-year budgets, which contribute to stable operations. Moody’s also cited London’s recent history of positive operating results, application of strict controls on issuing debt, and a conservative approach in the City’s debt and investment policies as factors in the Aaa credit rating.
“The City of London has received this rating since 1977. That speaks to our long-standing history of financial stability and fiscal prudence. In recent years, setting a multi-year budget has also served the City well, ensuring that we are focused on the long-term, and supporting decision making that’s fiscally responsible,” said Mayor Matt Brown.
Adds Anna Lisa Barbon, Managing Director, Corporate Services and City Treasurer, Chief Financial Officer, “The affirmation of the City’s Aaa credit rating and stable outlook is a testament to the City’s standalone credit strength. Despite the change in rating outlook at the provincial level, Moody’s has confirmed their confidence in our ability to remain stable and post positive operating results.”
Moody’s typically reviews the City’s credit worthiness annually, then assigns the City a credit rating. Later this summer, Moody’s will be conducting their more detailed annual review of the City’s credit rating. This will include a review of the City’s 2017 financial statements, 2018 Annual Budget Update, forecasts, a site visit to the City and other independent research.