City of Calgary retains AA credit rating

Post Date: Friday, June 09, 2017
Thanks to prudent and smart management at The City of Calgary, DBRS Limited has reaffirmed the Issuer Rating and Long-Term Debt rating of The City of Calgary at AA (high), and the Commercial Paper rating at R-1 (high), with Stable trends.

The agency highlights several strength factors including:
  • Demonstrated fiscal prudence
  • Sizable financial reserves 
  • Strong and stable tax revenue base
  • Leading economic and population growth in past decade.
In affirming the rating, DBRS says that “the ratings are supported by a low DBRS-adjusted tax-supported debt burden, a high level of liquidity and reserves, stability in key revenue sources and disciplined fiscal management amid a still-challenging economic climate in Alberta”. The agency points out that The City has continued to post operating surpluses and maintains a relatively low municipal tax burden, despite sustained pressures for service expansion and spending growth. DBRS also notes “Calgary’s sound fiscal management and solid track record is evidenced by its use of multi-year budget planning frameworks, comprehensive capital investment plans and long-term municipal development strategies”.

Mayor Nenshi's comment about this news are included in this Metro Calgary story.