Moody’s Investors Service has maintained the City of London’s Aaa credit rating and stable outlook, the highest rating possible.
“The City of London has a long history of financial stability and prudent fiscal management, and I’m proud to see that tradition continue despite the rising cost of borrowing and volatile markets.” says Mayor Ed Holder. “The fact we can retain this gold standard in credit, and at a time when many of our counterparts are facing strong headwinds, provides our municipality with significant advantages and financial flexibility. This achievement is a testament to our Council members, our senior leadership team, and our exceptionally talented finance team.”
In assigning this rating, Moody’s noted the flexibility provided by the City’s multi-year budget approach and low debt levels supported by conservative debt management practices. Moody’s also cited London’s history within a mature, supportive institutional framework governing a municipality in Ontario. Moody’s also noted the City’s track record of generating positive fiscal outcomes as a highlight of robustness of fiscal planning.
“The City’s ability to maintain the Aaa credit rating for 46 consecutive years is a true testament to sound financial policies and prudent financial planning”, says Anna Lisa Barbon, Deputy City Manager, Finance Supports and City Treasurer. “We are committed to maintaining this high degree of creditworthiness as a reflection of the financial strength of the City to support our community through the fiscal pressures of a pandemic recovery in an inflationary environment.”
Moody’s, a leading provider of credit ratings, research, and risk analysis, typically reviews the City’s credit worthiness annually, then assigns a credit rating. This includes a review of the City’s most recent audited financial statements, the most recent Multi-Year Budget and applicable annual updates, forecasts, meeting with City administration, officials, and other independent research.