THUNDER BAY — The City of Thunder Bay has received a credit rating of AA+ from S&P Global Ratings for the fourth consecutive year.
The assessment by the respected international ratings agency leaves the city with the second-highest rating possible, and indicates a strong capacity to meet financial commitments with a very low risk of default.
Over the past decade, the city's lowest rating was AA- in 2016.
It then improved to AA for the next five years, and improved again to AA+ from 2022 to the current year.
"The stable outlook reflects S&P Global Ratings' expectation that, in the next two years, Thunder Bay will maintain overall sound financial results, generating near-balanced after-capital results on average, supported by prudent financial management practices and despite near-term inflationary challenges and elevated capital spending," a May 15 report from the company stated.
"We also expect the city will sustain a low debt burden...and a robust liquidity position."
S&P further described the city's liquidity position as exceptional, calling it a key credit strength.
Keri Greaves, commissioner of corporate services and the city treasurer, said S&P's evaluation shows Thunder Bay is in solid financial shape.
"We view the reaffirmation of the AA+ credit rating with a stable outlook as validation that the city's financial position remains sound, especially considering current global economic uncertainties," he said. "The report recognizes the city's disciplined budgeting, sound financial practices, and the successful execution of our strategic and fiscal plans."
Greaves told Newswatch that even though the city currently borrows through Infrastructure Ontario at preferred rates, the credit rating signals strength, and positions the city well if it ever needs to access capital markets directly in the future.
