Financial credit

The city obtains the highest possible financial credit rating of AAA

Read S&P’s 2022 Credit Rating Report for Guelph

Guelph, ON, September 14, 2022 – Today the City of Guelph was awarded the highest possible independent credit rating of AAA by S&P Global Ratings. This rating reflects the City’s commitment to the long-term financial sustainability and resilience of Guelph’s local economy.

“This AAA credit rating – the highest possible – is an objective, third-party assessment of Guelph’s financial condition that shows our fundamentals are strong. This speaks to Council and administration’s collective focus on strong fiscal discipline and prudent policies,” said Mayor Cam Guthrie.

S&P is an independent company that reviews municipalities and businesses around the world and analyzes their ability to meet their financial obligations. The report highlights the strength of Guelph’s economy and its fiscal resilience through future economic cycles, with the authors of the S&P report noting, “We expect Guelph to remain a destination for economic development.” The City’s stable financial foundation and long-term revenue planning initiatives include the long-term fiscal framework, strong reserve balances and responsible debt management.

S&P also points out that the benefits of the City’s multi-year budget process are critical to the stability of Guelph’s financial situation: “The City has begun preparing multi-year budgets” and “Guelph plans to introduce a four-year operating budget in 2024.” The report also highlights the capital program resourcing strategy, noting that “Guelph has also begun to strengthen its capital projects team, which has resulted in higher capital expenditures this year and lower expected deferrals going forward. It is also undertaking a capital reprioritization project to better inform its future capital plans. »

“This third-party, neutral credit score is not just a grade on a report card. It illustrates Guelph’s long-term planning and overall commitment to fiscal responsibility now and into the future to ensure a strong foundation for our community,” said Scott Stewart, City Manager. “Achieving the highest possible rating allows our taxes to go further through a lower cost of borrowing and provides the tax flexibility we need to fund critical infrastructure projects in the city.

Other factors contributing to S&P’s credit rating for Guelph include a relatively diversified economy, including a robust manufacturing sector and a large public sector with a university, schools, hospitals and municipal government. Guelph’s growing population, increased construction activity, diverse employment base, and strong ties and proximity to the Greater Toronto Area are all additional strengths.

Earlier this year, S&P conducted a review of the institutional framework used for credit rating analysis. The City of Guelph, along with 21 other municipalities, received a rating review and were upgraded to a AAA credit rating. This official review reaffirms Guelph’s position as a AAA-rated municipality and its strong financial footing.

About S&P Global Ratings
S&P Global Ratings is a leader in independent credit risk research and market intelligence, including credit ratings, research and thought leadership. It has offices in 26 countries and over 150 years of experience.

Media contact

Shanna O’Dwyer, Acting Chief Executive Officer and City Treasurer
Finance
City of Guelph
519 822-1260 ext. 2300
[email protected]