York Region receives top AAA credit rating

Strong finances, steady debt levels, combined with lower interest costs as a percentage of operating revenue, cited by S&P Global Ratings as reasons for the upgraded rating

Newmarkettoday.ca
Sept. 27, 2021

S&P Global Ratings has upgraded the credit rating for The Regional Municipality of York from AA+ to AAA, with stable outlook, marking the Region’s first increase from S&P Global Ratings in seven years.

The AAA rating is the highest S&P Global Ratings can give to an issuer and is awarded for investment-grade debt having a high level of creditworthiness with the strongest capacity to repay investors.

“Being recognized with the highest credit rating by S&P Global Ratings is exceptionally great news for York Region,” said York Region Chairman and CEO Wayne Emmerson. “Maintaining a high credit rating is a Council priority and is in alignment with the Region’s Fiscal Strategy. First adopted by Regional Council in 2014 and updated annually, the long-term strategy aims to ensure both financial sustainability and fairness of the Region’s investments, programs and services over time and generations.”

York Region’s extremely strong finances, steady debt levels combined with lower interest costs as a percentage of operating revenue were cited by S&P Global Ratings as reasons for the upgraded rating.

The stable outlook is based on the following expectations by S&P Global Ratings for the coming years:

• York Region’s diverse economy will continue to support revenue-growth resulting in strong budgetary surpluses to help fund the capital plan
• York Region will continue to adapt the capital plan and related costs to align with fluctuations in population growth and development charge collections
• York Region continues to limit new debt issuance to fund growth-related spending and maintain net debt below its 2017 peak of $2.9 billion
• Interest costs remain stable relative to revenue

“In recent years, York Region’s prudent fiscal strategies surrounding capital asset investments and spending have resulted in large asset replacement reserves and lower debt issuance,” said City of Vaughan Mayor Maurizio Bevilacqua, Chair of Finance and Administration. “Our strong financial position is enviable, and a testament to diligent behind-the-scenes work and strong support by Regional Council.”

York Region’s credit rating compares favourably against peer municipalities, Canadian provinces and the Government of Canada.

The Regional Municipality of York consists of nine local cities and towns and provides a variety of programs and services to 1.2 million residents and 54,000 businesses with 650,000 employees. More information about the Region’s key service areas is available here.