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S&P maintains AAA credit rating for City of Saskatoon

Saskatoon’s interim chief financial officer said they are encouraged by the AAA rating from S&P Global.
Saskatoon’s interim chief financial officer said they are encouraged by the AAA rating from S&P Global. Alex Maveal / Viewer Submitted

S&P Global said sound financial management is one reason it has affirmed the City of Saskatoon’s AAA credit rating.

The credit rating service said strong operating surpluses and the city’s budgetary position over the next two years also factored into its decision to maintain its stable outlook for Saskatoon.

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“The stable outlook reflects our expectation that Saskatoon will continue to benefit from sound financial management and a very strong and diverse economy in the next two years while maintaining ample liquidity,” S&P said Monday in its report.

“Strong operating surpluses should enable the city to implement its capital plans while maintaining ample cash balances and minimal levels of tax-supported debt.”

The city’s interim chief financial officer said they are encouraged by the rating.

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“The rating agency points to a ‘strong and diversified’ economy in our city, the fact we’ve kept debt ‘minimal’ and are able to pass budgets before the start of the fiscal year as benefits,” Clae Hack said.

“It provides that certainty for anyone looking to invest and create jobs in Saskatoon and it allows us at city hall to plan for the growth that happens as a result.”

S&P said the city’s average GDP per capita of US$45,600, relatively high median household income, and the fact that Saskatoon is Saskatchewan’s commercial centre were also factors in its decision.