City maintains Triple-A rating

Despite the recent downgrade of Ontario’s credit rating, the City of Ottawa has maintained its Triple-A rating, according to the latest report from Moody’s Investor Service.

“This is a reflection of sound financial stewardship by this Council and City staff, and the prudent and respectful use of public money,” said Mayor Jim Watson in a statement. “We have brought our financial house in order by striking the right balance: keeping taxes and user fees low while continuing to invest in programs and projects that enhance quality of life.”

When Moody’s downgraded the province to Double-A negative in April, it looked at 19 other municipalities, institutions or organizations it thought could be affected due to their close economic ties with the province.

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Five were downgraded, but 14, including the City of Ottawa and the University of Ottawa, remained the same. The university remains at Double-A stable.

In its report issued this week, Moody’s said the municipalities that remained stable will be able to withstand the provincial downgrade thanks to a “high dependence on self-generated revenue, strong reserve levels and track record of managing operating pressures.”

Moody’s said the University of Ottawa’s “diversity of programs, strong research programs and robust student demand” is what kept its rating stable.

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