Credit rating agency gives Guelph a triple-A grade for second consecutive year

Guelph is receiving top marks for having a high financial credit rating from Standard & Poor’s Global Ratings.

In a news release on Tuesday, the city of Guelph said it received AAA, which is the highest rating possible from the financial agency.

Mayor Cam Guthrie said receiving the high rating is a testament to council and to the city administration for their collective focus on strong fiscal discipline and prudent policies.

S&P Global is an independent company that analyses cities and corporations around the world and evaluates their capacity to meet financial obligations.

“This AAA credit rating — the highest possible — is an objective, third-party assessment of Guelph’s financial picture that shows our fundamentals are solid,” Guthrie said.

The agency said it found the city’s strong economy is due in part to a broad manufacturing sector and a large public sector including schools and hospitals.

As a key to Guelph’s stable financial position, the report also looked at the benefits of the multi-year budget process with plans to introduce a four-year operating budget in 2024.

Chief administrative officer Scott Stewart said the credit rating isn’t just a letter grade on a report card, either.

“It exemplifies Guelph’s long-term planning and overall commitment to fiscal responsibility now and in the future to ensure a solid foundation for our community,” he said.

The agency said the rating rationale considers Guelph’s strong financial management practices, well-defined financial policies and exceptional liquidity position.

Additional factors that contribute to the credit rating include the city’s relatively diverse economy, growing population, diverse employment base and proximity to the Greater Toronto Area.

Guelph also received a AAA credit rating from S&P Global last year.