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The County of Essex has been given a AAA rating with a stable outlook by S&P Global Ratings, an American credit rating agency formerly known as Standard and Poor’s.
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The county’s rate increased from its AA+ rating to AAA on the heels of the COVID-19 pandemic.
S&P raised its ratings on 21 Canadian municipalities after revising its assessment to “extremely predictable and supportive” based on how the municipalities weathered the pandemic.
Due to “timely and prudent fiscal management,” along with support from the federal and provincial governments, we were able to overcome the challenges of increased costs for health and safety while revenues from some services decreased, according to an S&P statement.
“The AAA rating with a stable outlook is good news for County of Essex taxpayers,” said Warden Gary McNamara in a statement.
“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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Municipalities given a AAA rating “demonstrate robust management practices, with greater transparency and visibility of longer-term plans,” according to the statement. “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.”
Windsor’s rating also increased — to AA+ from the AA rating it has had since 2007.
A higher credit rating allows a municipality to borrow at a lower interest rate.