Credit rating rises

The city’s credit rating is on the rise.

Standard & Poor’s, the company that calculates them, has upgraded Thunder Bay’s from A+ to AA-.

“This rating reflects the positive direction of our city,” said Carol Pollard, the city treasurer and general manager of finance and Service in a release issued late Thursday afternoon.

“By employing prudent financial planning and adhering to financial principles, the city is building a healthy and sustainable community.”
According to the city, a credit rating measures its ability to meet its financial obligations. The higher the rating, the better the interest rates the municipality can borrow money at.

Standard & Poor’s cited the city’s “robust liquidity, healthy budgetary performance and moderate debt.” The higher rating also reflects an expectation of healthy operating surpluses over the next two years.

The rating was also influenced by the fact 20 per cent of the city’s workforce is employed in the public sector, providing a stable economic base.

Economic diversification into knowledge-based industry was also a factor.