The City of Mississauga has received an ‘AAA’ credit rating from Standard & Poor’s Ratings Services (S&P) for the 17th year in a row. The rating was based on the City’s extremely high liquidity levels and its dynamic and diversified economy. The City was able to maintain its score of “AAA” despite the challenges faced due to the COVID-19 pandemic.
“I’m proud that despite the challenges we have faced as a City this year, that Mississauga continues to be recognized as a municipal leader in fiscal management, especially as we embark on the road to economic recovery,” said Mayor Bonnie Crombie. “We have a strong Financial and Economic Recovery plan in place that will help us build back better as we work to address the pressures that arise from COVID-19 in the years to come. This plan will help us remain fiscally prudent and financially strong while ensuring we can continue to provide the key services residents and businesses rely upon.”
S&P’s report stated that, “Mississauga’s life sciences, advanced manufacturing, financial services and information and communication technology sectors fuel the city’s robust economy. Mississauga’s competitive tax rates, proximity to major markets and extensive transportation infrastructure network have also aided its economy and helped attract and retain investment.”
“We’ve had to make many difficult yet necessary decisions to move us forward during the COVID-19 pandemic,” said Gary Kent, Commissioner of Corporate Services and Chief Financial Officer. “The stable outlook reflects our City’s ability to bounce back from the financial impacts of the pandemic, but there is work to be done. Along with the $46 million from the Government of Ontario and funding from the Government of Canada, Mississauga will be able to address the approximately $60 million deficit that we are facing in 2020. However the echo impacts for future years will require additional assistance from other levels of government and continued strong financial leadership from Council and staff as the 2021 budget is set. I am confident we have a strong foundation to meet those challenges.”
S&P added that, “Mississauga’s credit profile benefits from very strong financial management. The City has a robust set of financial policies, including a debt policy that sets out which capital projects are eligible for debt financing and establishes debt service limits. Mississauga provides clear and transparent disclosure, including unqualified financial statements.”
Kent added, “In addition to rolling out our Recovery Plans, our Long-Range Financial Plan identifies future financial challenges and opportunities, helps us maintain financial sustainability and prepares us for unforeseen circumstances like the pandemic by maintaining strong reserve funds.”
Mississauga’s Long-Range Financial Plan is a snapshot of the City’s current and anticipated financial position over the next 10 years. The plan supports the vision of the City’s Strategic Plan: Our Future Mississauga. The City’s Annual Report Highlights reflect its commitment to transparency in financial reporting.
For more information, visit standardandpoors.com.
To learn more about the City of Mississauga’s finances, visit mississauga.ca/financereports.
About S&P Global Ratings:
In 26 countries around the world and a history that dates back more than 150 years, S&P Global Ratings provides high-quality market intelligence in the form of credit ratings, research and thought leadership.
An S&P Global Ratings issuer credit rating is a forward-looking opinion about an obligor’s overall creditworthiness. An obligor rated ‘AAA’ has extremely strong capacity to meet its financial commitments. ‘AAA’ is the highest issuer credit rating assigned by S&P Global Ratings.