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S&P Global Ratings has increased its credit rating for the County of Essex to AAA with a stable outlook.
The County is one of 21 municipalities for which S&P raised its ratings after revising its assessment for Canadian municipalities to “extremely predictable and supportive” based on how they have weathered the COVID-19 pandemic. Ratings for another 13 municipalities remain the same.
Due to “timely and prudent fiscal management,” along with support from the federal and provincial governments, municipalities were able to overcome the challenges of increased costs for health and safety while revenues from some services decreased, says an S&P statement.
Municipalities given a AAA rating “demonstrate robust management practices, with greater transparency and visibility of longer-term plans,” it says. “These entities typically maintain operating and after-capital surpluses. Municipalities in this rating category typically benefit from strong economic fundamentals, which support healthy growth in own-source revenues.”
The higher a municipality’s credit rating, the lower its cost to borrow money.
“The AAA rating with a stable outlook is good news for County of Essex taxpayers,” said Warden Gary McNamara. “It is not a surprise, given the excellent work of our entire staff and County Council’s longstanding pay-as-you-go approach.”
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