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News Release

Durham Region maintains its second Triple A credit rating

WHITBY, ON April 3, 2013 – The Regional Municipality of Durham continues to maintain its Triple A credit rating with Standard & Poor’s (S&P). Durham Region is one of only seven select Canadian municipalities to have this exemplary reputation in the investment community.

The ranking was obtained following S&P’s review of fundamentals that are central to the credit rating, including capital forecasts, economic growth, reserve fund planning, property taxation and assessment, borrowing requirements, risk management and future operational plans. As a result of the Region’s sound financial planning, S&P believes the organization has a stable outlook.

“Durham Regional Council has always aimed to maintain a low debt burden,” said Roger Anderson, Regional Chair and Chief Executive Officer. “This Triple A credit rating is a reflection of the Region’s prudent financial policies, which make our organization a leader.”

Within its report, S&P noted that the Region’s long-term financial results have been strong. This means the organization can fund a large portion of its capital spending, while also maintaining adequate flexibility to deal with cost pressures resulting from service requirements or unforeseen financial challenges.

“Our annual budget documents are detailed–outlining how the Region plans to deal with the current economic environment, while managing anticipated growth in our community,” said Regional Councillor Don Mitchell, Chair of the Finance & Administration Committee. “This rating demonstrates that fiscal responsibility and integrity are important, as we continue to build Regional programs and services to meet service demands.”

The 2013 Regional Business Plans and Budgets reflect the credit principles fundamental to this rating, as the business planning documents and audited financial statements are seen as comprehensive, transparent and detailed. The five-year forecast, used as part of each budget process, also helps to identify key risks to expenditures and revenues over a multi-year planning horizon.

“This credit rating reaffirms Durham Region’s dedication to long-term financial planning,” said Jim Clapp, Commissioner of Finance. “We will continue to focus on maintaining low debt levels and strong reserves, in order to manage financial pressures related to future growth, the economic environment and unforeseen circumstances or operational requirements.”

The S&P rating is the second Triple A designation for the Region of Durham this year, as Moody’s Investors Service of New York confirmed this same honour earlier this year.

 

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For more information, please contact Corporate Communications.