S&P Global Raises City of Toronto’s Credit Rating to AA+ for the First Time in Over Two Decades

October 25, 2024 Danielle Larmond 0 Comments 2 min read

Toronto – In a significant financial milestone, S&P Global has upgraded the City of Toronto’s credit rating from AA to AA+, the first time the city has received this rating in more than two decades. The last time Toronto achieved an AA+ rating was between 1992 and 2001.

S&P Global’s decision reflects Toronto’s strong fiscal management and forward-thinking initiatives, such as the City Council’s Updated Long-Term Financial Plan and its multi-year budgeting strategy. The city’s commitment to balancing operating and capital needs, along with its robust reserves, played a critical role in the rating increase. The updated financial plan and approach to budgeting were praised for providing a sustainable financial path for the city.

S&P Global raises City of Toronto’s credit rating to AA+ for the first time in more than two decades

News Release: https://t.co/pc78FDnAg4

— City of Toronto (@cityoftoronto) October 23, 2024

Additionally, the rating boost was credited to the financial backing Toronto has received from other levels of government, particularly through the Ontario-Toronto New Deal. A key element of this deal is the uploading of the F.G. Gardiner Expressway and the Don Valley Parkway to the province, freeing up nearly $1.9 billion over the next decade. These funds are slated for vital investments in public transit, housing, and other city priorities.

The upgraded credit rating is expected to provide the city with access to lower long-term borrowing costs, enabling more affordable investment in key infrastructure projects, including affordable housing, transit, and essential services like wastewater management.

City of Toronto Credit Ratings as of October 2024:

S&P Global Ratings: AA+ (Stable)
Moody’s Investors Services: Aa1 (Stable)
DBRS Morningstar: AA (Stable)

Mayor Olivia Chow expressed pride in the city’s financial recovery: “Just one year ago, Toronto faced a significant $1.8 billion budget deficit. Today, we’re celebrating this impressive milestone, which signals that we’re on the right track. This is a testament to the hard work of our Council, the Budget Committee, and strong partnerships with the provincial and federal governments. We still have work to do, but today’s news shows that we’re moving in the right direction.”

Budget Committee Chair Councillor Shelley Carroll noted the impact of the city’s new financial approach: “Our new multi-year budgeting system and the leadership of our Council have been critical in this achievement. By reducing our borrowing costs, we’re able to invest in the infrastructure and services that Toronto’s residents rely on.”

Chief Financial Officer & Treasurer Stephen Conforti highlighted the importance of Council’s leadership: “This rating increase from S&P Global reflects increased confidence in the city’s financial future. The Updated Long Term Financial Plan, combined with the Ontario-Toronto New Deal, has set us on a path that will allow continued investment in the services and infrastructure essential to our residents and businesses.”

Toronto continues to solidify its position as a global leader in areas such as finance, technology, and innovation, while maintaining its standing as one of the world’s most diverse and livable cities.

For more information, visit www.toronto.ca or follow the City of Toronto on social media.