Peel Region receives highest possible credit rating for 26th consecutive year
Published September 17, 2021 at 11:44 am
The Region of Peel has once again received a AAA credit rating with a stable outlook from S&P Global Ratings—the highest rating a municipal or regional government can achieve.
Higher credit ratings for municipalities allow them to deliver more infrastructure projects in a shorter span of time by allowing them to borrow more money.
“A high credit rating provides access to lower long-term borrowing costs for the Region of Peel as well as Brampton, Caledon and Mississauga for investments in infrastructure such as water, wastewater, transit, roads, affordable housing and other municipal infrastructure,” Gary Kent, Chief Financial Officer and Commissioner of Corporate Services for the Region of Peel, said in a news release.
Additionally, because it blends commercial funding with public resources, a higher borrowing limit allows municipalities to take on larger infrastructure projects, that otherwise wouldn’t be possible if funded exclusively through surplus funds.
This year marks the 26th consecutive year Peel has received such a rating, which is due to financial management and supportive institutions, as well as the Region’s responsible management of tax dollars, while still delivering affordable services to residents and businesses, presently as well as in the long-term.
“Stable outlook reflects S&P Global Ratings’ expectations that the Region will continue to implement strong long-term financial planning policies such that its budgetary performance remains very strong, generating after-capital surpluses,” reads a statement from S&P.
According to S&P, Peel boasts high-income levels and a diverse economy, and federal income support programs foster stability in the Region’s property tax base, despite the negative impact caused by the pandemic.
Peel is one of just nine municipalities in the country to receive such a rating.
“This ensures Peel’s services remain affordable and sustainable for both residents and businesses, now and in the future,” Kent said.insauga's Editorial Standards and Policies