The Regional Municipality of Durham


News Release

Durham Region maintains its Triple A credit rating after Moody's undertakes a review

WHITBY, ON July 11, 2014

The Regional Municipality of Durham has maintained its Triple A credit rating with Moody’s Investors Service of New York (Moody’s), following the corporation’s decision to change the Province of Ontario rating outlook from “Aa2 stable” to “Aa2 negative.”

“Durham Region’s Triple A credit rating is a testament to Regional Council’s long-standing commitment to strong financial policies and planning,” said Roger Anderson, Regional Chair and Chief Executive Officer. “The Region maximizes its up-front costs for capital infrastructure projects—such as roads, bridges, buildings and others—to minimize debt and maintain our reserves. These common practices demonstrate why our organization is still a provincial leader in fiscal responsibility and integrity.”

“Durham Region has maintained this exceptional credit rating because of its low debt levels, strong reserves and reserve funds—qualities that create core strengths and financial flexibility,” said Don Mitchell, Chair of the Finance & Administration Committee. “Moody’s recognizes that the Region depends on self-generated revenue and has a track record of managing its operational pressures. This is important, as it demonstrates that Durham Region is strong enough to withstand changes to provincial ratings.”

As noted in the past, Moody’s highlighted the Region’s strong, local, diversified economy as a major strength, a growing institutional base (including a significantly expanded post-secondary education sector), and health-care facilities, most notably the Durham Regional Cancer Centre. This credit rating is significant. It not only provides confidence to Regional stakeholders, but also significantly reduces the cost of borrowing when the Region and the local municipalities require long-term financing for capital expenditures.

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