Once again the City of Saskatoon has earned the highest credit rating possible from the international bond agency Standard and Poor’s.
“We are AAA-stable,” said Mayor Don Atchison.
“It’s really good news when you consider the fact that the banks yesterday received a downgrade.”
On Monday, Moody’s Investors Service Inc. downgraded the credit ratings of Canada’s largest banks, explaining that rising consumer debt levels leave Canada vulnerable to an economic slowdown. (check out Moody's report here)
But on Tuesday, city hall got the stamp of approval as S&P gave Saskatoon the green light to continue building a 21st century city.
“What it tells the citizens of Saskatoon is that we are running a well-financed city, that we do have great concerns for borrowing money, that we are concerned about debt and that we don’t go out and invest money for the sake of investing it, we’re making wise investment decisions,” said Atchison, adding that two years ago the city didn’t borrow any money.
Standard and Poor’s views the city of Saskatoon as having a stable financial outlook. In a release S&P said they were confident cash flow and cash investments will increase to offset any rising debt. Simply put, Saskatoon has a leading economy and is expected to continue to grow.
A triple-A credit rating also means the city can borrow money at a lower interest rate. Atchison said the savings aren’t tremendous, but it’s better than nothing.
Standard and Poor’s evaluation of the city’s credit assessed liquidity, debt level and financial management policies.