City of Saskatoon maintains ‘AAA’/Stable credit rating from S&P Global
The City of Saskatoon has once again achieved a ‘AAA’ credit rating with a “Stable” outlook, confirmed today by S&P Global Ratings (S&P). The City has maintained the highest rating possible for 23 years since S&P first began affirming the City’s rating in 2002.
“Saskatoon City Council and the Administration are committed to fiscal responsibility and transparency as we focus on delivering high-quality civic services and programs to residents today and into the future. The endorsement by S&P confirms that we continue to be on the right track,” says Clae Hack, Chief Financial Officer.
“While we are excited to receive the ‘AAA’/Stable credit once again, it’s not something we take for granted,” says Hack. “This rating reaffirms that the City is managing its finances responsibly as we continue to focus on planning appropriately to ensure we can meet the needs of our growing city now and for years to come.”
S&P rates the City of Saskatoon’s institutional framework as “extremely predictable and supportive” and bases credit context on having “effective financial management practices [that] will support strong operating balances.”
S&P’s rationale and outlook contributing to the confirmation of the City’s strong credit rating within the January 15, 2025, S&P Global Ratings Direct® Report states:
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“Saskatoon’s small, diverse economy and strong population growth will support its creditworthiness.”
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“We expect the City’s strong financial management, coupled with an extremely predictable and supportive institutional framework, will support the rating.”
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“Saskatoon’s strong and prudent financial management is a key credit strength, in our view. Although the recent municipal elections resulted in a historic turnover among council, the city’s administration remains largely stable, with significant experience and a record of effectively enacting fiscal policies.”
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“We view both management accountability and transparency to be strong, as reflected in ongoing disclosures and grounded assumptions, as well as prudent financial policies.”
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“The City consistently produces robust annual budget documents. It also prepares multi-year operating and capital budgets for upcoming years, alongside comprehensive long-term capital and borrowing plans. This underpins fiscal transparency and discipline, in our assessment.”
S&P Global report indicates that the City of Saskatoon’s strong budgetary performance will ensure a manageable debt burden amid large capital expenditures including Link (Bus Rapid Transit), infrastructure maintenance, and firehalls. With these projects being partially funded out of the City’s reserves, S&P expects after-capital surpluses averaging 2.8% of revenues during the base-case period.
“The City is moving forward with significant projects, such as Link, that support the needs of a growing city,” says Hack. “We are confident in our plans to deliver these projects in a fiscally responsible manner, and this is underpinned by S&P’s assessment.”
Credit ratings are one of several tools that investors and lenders use when making decisions regarding an organization’s future financial strengths and weaknesses. For the City of Saskatoon, the ‘AAA’/Stable rating serves as an indication of the City’s credit risk and ability to meet its financial obligations in full and on time.
View reports on the City of Saskatoon’s financial performance and credit rating history at saskatoon.ca.