City services | September 23, 2022
The City of Mississauga has received an ‘AAA’ credit rating, the highest rating, from Standard & Poor’s Ratings Services (S&P) for the 19th year in a row. The rating is a result of the City’s very strong financial management practices and proven budgeting process. S&P’s report noted that Mississauga was also recognized for its ability to put in place sound fiscal policies and respond effectively to external factors like the COVID-19 pandemic.
“Mississauga is a leader in effective financial management,” said Mayor Bonnie Crombie. “Our taxpayers have rightly come to expect us to be smart with their money, and residents and businesses alike can be confident that our city has a strong plan in place to grow our economy and remain prepared to weather any storm. Our ‘AAA’ credit rating reflects our dedication to prudent financial management and our strong financial team at City Hall. The direction and strategies they have provided have led us towards a robust recovery.”
As part of its ratings analysis, S&P Global Ratings evaluates available current and historical information and assesses the potential impact of foreseeable future events. In this year’s report, Mississauga earned a 1, the strongest score, for Debt Burden as well as all other Key Rating Factors such as Economy, Financial Management, Budgetary Performance and Liquidity. S&P’s report stated that, “the City has a robust set of financial policies, including a debt policy that sets out which capital projects are eligible for debt financing and establishes debt service limits. Mississauga provides clear and transparent disclosure.”
The report further noted that Mississauga has “multi-year business plans that are updated on an annual basis and operating budgets detailed out one year in addition to a three-year outlook. It also prepares a detailed capital budget annually that includes a 10-year capital plan with funding sources, which the city keeps refining.”
“During this time of high inflation and pandemic-related revenue impacts, the maintenance of the City’s ‘AAA’ credit rating, which includes a stable outlook, is an exceptional endorsement by S&P regarding the way the City manages its financial affairs,” said Shari Lichterman, Commissioner of Corporate Services and Chief Financial Officer. “There’s no doubt that the City’s low debt and healthy liquidity continues to be one of our many financial strengths. These factors play a large role in helping us invest in Mississauga and its residents now and in the future.”
To learn more about the City of Mississauga’s finances, visit mississauga.ca/financereports.
In 26 countries around the world and a history that dates back more than 150 years, S&P Global Ratings provides high-quality market intelligence in the form of credit ratings, research and thought leadership.
An S&P Global Ratings issuer credit rating is a forward-looking opinion about an obligor’s overall creditworthiness. An obligor rated ‘AAA’ has extremely strong capacity to meet its financial commitments. ‘AAA’ is the highest issuer credit rating assigned by S&P Global Ratings.
City of Mississauga Media Relations
905-615-3200, ext. 5232