A major credit rating agency has upgraded Guelph’s outlook in its latest review of the city’s credit-worthiness.
While reaffirming Guelph’s current “AA” credit rating, Standard & Poor’s Ratings Services has upgraded the city’s outlook from “stable” to “positive.”
“This council has implemented several new financial policies. Our improved credit rating shows they’re paying off,” Mayor Karen Farbridge said in a news release.
Guelph’s low unemployment rate was a key factor in the rating improvement, along with the city’s diversified local economy, the release said.
It said Standard & Poor’s also noted the city’s continuing efforts to manage its debt by focusing on infrastructure renewal and replacement, reducing debt-financed projects and deferring growth-related projects into future years. The city’s increasing liquid assets and reserves also influenced Standard & Poor’s outlook assessment.
“Guelph is growing, and this research shows we’re financially prepared to manage that growth in a way that’s affordable and sustainable,” Al Horsman, the city’s new chief financial officer, said in the release.