City keeps triple-A credit rating from Moody's

OBJ Staff
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The City of Ottawa has maintained a favourable credit rating from international credit agency Moody’s Investors Service.

Ottawa City Hall

The triple-A rating reflects “strong fiscal outcomes, a manageable debt burden, strong liquidity and a stable economic base” for the municipality, according to a press release the city issued on Tuesday.

Credit ratings play a key role in setting interest rates. A high rating means the organization is less likely to default on its debt.

The city has borrowed heavily in recent years to help it finance major infrastructure projects – such as its plan to build a spine of light-rail through Ottawa’s downtown – without having to introduce major cutbacks in other areas.

“The Moody’s report recognizes the city’s adherence to long-term capital planning which ensures that debt levels and debt-servicing costs remain manageable," said Marian Simulik, the city’s treasurer, in a news release.

"Council has made financing the city’s future in a responsible way a priority and the triple-A rating is a testament to this approach.”

Geographic location: Ottawa

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