Yesterday, Standard & Poor’s (S&P) Global Ratings announced that the County of Wellington’s credit rating has been affirmed at AAA; Outlook Stable. The AAA credit rating is the highest possible rating that any municipality can achieve.
S&P is an independent company that looks at municipalities and corporations around the world and analyzes their capacity to meet financial obligations. Municipalities that borrow under the AAA credit rating access the best possible capital financing rates and minimize long-term infrastructure capital financing costs.
“This upgraded credit rating reflects the County’s strong operating performance and excellent financial management,” said Warden Kelly Linton. “It’s a testament to the strong financial position and prudent financial practices of County Council and staff.”
Standard & Poor’s highlighted the following areas for the AAA credit rating:
• The County of Wellington’s strong local economy supports healthy budgetary results, such that balances after capital accounts remain in a surplus during the two-year outlook horizon.
• Reliance on debt remains in line with expectations, keeping the burden, including on-lent debt, close to 30% of consolidated operating revenues.
• Accordingly, S&P Global Ratings affirmed its ‘AAA’ long-term issuer credit and senior unsecured debt ratings on the County of Wellington.
• The stable outlook reflects our view that a positive economic trajectory and prudent management will support strong financial results, with positive after-capital balances in the next two years. We also expect the county’s execution of the capital plan will not result in a significantly higher reliance on debt or internal resources relative to our current expectations.
“This top credit rating allows public funds to go further and helps the County invest in critical infrastructure projects that make Wellington County a wonderful place to live, visit and do business,” commented Chris White, Chair of the County’s Administration, Finance and Human Resources Committee. “The AAA credit rating from S&P exemplifies the County’s commitment to fiscal responsibility and strong financial management.”