BRAMPTON: S&P Global Ratings (S&P) has affirmed the City of Brampton’s Triple ‘A’ rating for 2020, the highest credit rating a municipality can receive, with a stable outlook.
According to S&P, the rating reflects the City’s robust economy and financial management practices, which will support its recovery from the COVID-19 pandemic.
S&P states factors contributing to the City’s strong credit rating, include:
• Exceptional liquidity position, with debt service coverage stronger than that of peers.
• Good socioeconomic and demographic characteristics, with a younger-than-national average population and healthy population growth, proximity to major markets, and competitive tax rates that attract new businesses and employment opportunities to the area.
• Easy-to-access disclosure to pertinent information, and detailed operating/capital budgets. The stable outlook rating reflects S&P’s expectation that Brampton’s economy will regain momentum in the next two years as COVID-19 restrictions ease, supporting the City’s strong budgetary performance and healthy liquidity position.
Mayor Patrick Brown said: “Over the last two years, our Council has taken action to uphold the City’s sound financial management practices. The first in nearly 20 years, we delivered
a tax freeze and managed to maintain it for two consecutive years, while making record contributions to reserves. We also conducted a value for money audit that found $9.3 million in savings and identified $10.5 million for further review. We will continue to take efforts that support Brampton being a Well-Run City\.”
Harkirat Singh, City Councillor, Wards 9 & 10; Chair, Corporate Services, said: “Our efforts prior to the onset of the pandemic strengthened the City’s reserves and helped solidify our financial standing, even in the face of the unprecedented challenges we see today. As one of the fastest-growing cities in Canada, located on the Innovation Corridor, Brampton remains a key growth hub that nurtures talent and diversity.”
David Barrick, Chief Administrative Officer, said: “We have strived to keep the City running efficiently through carefully balancing costs while modernizing our operations. To continue moving Brampton forward and better support our residents, businesses, and investors, especially as we recover from the impacts of COVID-19 – we remain committed to prioritizing service and financial excellence.”