RELEASE — June is report card season, and the City of Kingston has received a top grade from Standard & Poors (S&P) Global Rating Agency.
As a result of a recent review by S&P of the overall institutional framework used for municipal credit rating analysis, the City of Kingston’s credit rating was upgraded from AA (Stable) to AA+ (Stable).
“This is good news for Kingston,” says Desiree Kennedy, Chief Financial Officer and City Treasurer. “As interest rates continue to rise, having a strong credit rating will allow the City to borrow money at more favourable rates and with better terms,” she says.
S&P assessed the operating environment for municipalities as a whole and noted it to be “extremely predictable and supportive.” They cited the stable nature of municipal government and its ability to weather the challenges of the COVID-19 pandemic noting that municipalities – including City of Kingston – not only scaled back services and cut expenditures to mitigate the financial impact of the pandemic, but senior levels of government provided extraordinary support to cities that helped alleviate financial pressures.
Thirteen Canadian municipalities saw their current ratings reaffirmed as a result of S&P’s assessment; however, the City of Kingston was one of 21 municipalities that received an upward revision to its credit rating.
Some of the City’s fiscal strengths recognized by S&P last fall, included the quality of its financial management, strong political consensus in passing budgets and setting strategic priorities and prudent debt and liquidity policies. These factors, coupled with S&P’s current assessment of the Canadian municipal environment, resulted in the upward revision to the City’s credit rating.
“This is a vote of confidence in the City’s fiscal policies and its ability to meet its financial obligations,” says Kennedy.
The City’s regular annual review is still scheduled to take place later this year.
Release: City of Kingston