The City of Ottawa has maintained a favourable credit rating from international credit agency Moody’s Investors Service.
© Kane Van Ee
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.”