Guelph, Ont., August 31, 2021 – The City of Guelph has maintained a strong fiscal position throughout the pandemic resulting in a steady credit rating of AA+. This rating is reflective of the great work being done at the City and the resilience of the local economy.
“This credit rating is a testament to Guelph’s solid financial fundamentals which enabled us to respond quickly to the fiscal challenges of the pandemic and will help us emerge stronger than ever,” says Mayor Cam Guthrie. “This includes prudent policies, multi-year budgets aligned to our strategic plan, and a laser-focused dedication to strong fiscal discipline over the last several years.”
S&P, an independent company that looks at corporations around the world and analyses their capacity to meet financial obligations, shares that despite the economic uncertainty and slowdown resulting from the COVID-19 pandemic in 2020 and 2021, Guelph is well positioned to stay financially stable due to prudent financial management which allowed the City to weather the challenges of the pandemic. The City’s strong financial foundation and long-term revenue and expenditure planning initiatives including the multi-year budget process set to begin in 2022, implementation of the Long-Term Financial Framework, strong reserve balances and responsible debt management, and diligent response and monitoring of City services throughout the COVID-19 pandemic.
“Our AA+ rating proves that Guelph’s corporate financial position and local economy is strong and able to respond to unstable economic circumstances as we continue to prepare our organization for the future,” says Scott Stewart, chief administrative officer for the City. “We’re confident that linking our multi-year budget process to our corporate strategic plan positions us for ongoing success by allowing us to remain agile and ensure stability for the community as we recover from the pandemic.”
Additional factors contributing to S&P’s setting of Guelph’s credit rating include the city’s diversified economy, including a robust manufacturing sector and a mix of both large and small businesses, labour force indicators trending toward pre-pandemic rates as restrictions continue to lift, a very strong housing and population outlook, strong relationship with the County of Wellington and other levels of government, and recent work on the new Economic Development and Tourism Strategy.
“The economy is expected to rebound in 2021 thanks to Guelph’s resilient workforce, diverse employment base, and the attractiveness of the city as a destination for economic development,” reads the S&P credit rating report.
About S&P Global Ratings
S&P Global Ratings is a leader in independent credit risk research and market intelligence including credit ratings, research, and thought leadership. It has offices in 26 countries and more than 150 years of experience.
Tara Baker, City Treasurer and General Manager
City of Guelph
519-822-1260 extension 2084