City’s credit rating remains as Aa1

City of North Bay
News Release

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Despite the economic downturn and uncertainty in the markets, Moody’s Investors Service has maintained the City of North Bay’s credit rating as Aa1.

Moody’s assigned the Aa1 debt rating to the City of North, with the following rationale: it reflects North Bay’s prudent fiscal plan as well as stable operations. North Bay’s high investment-grade rating also reflects the City’s low debt burden and a diverse economy.

Budget Chief Deputy Mayor Peter Chirico said, “This is great news for the taxpayers of the City of North Bay. For the last six years, the cost of borrowing for the City continues to drop given our high credit rating. This means there is less burden on the taxpayer as we continue to follow a plan that works.”

Moody’s summarized the City’s credit strengths to include: a prudent and forward-looking approach to fiscal planning; low debt and debt servicing costs; increasing levels of reserves; and a mature, supportive, institutional framework governing municipalities in Ontario.

Their assessment concludes: North Bay’s revenue profile is stable and diversified, and the local economy remains diversified; the operating expense base is well-managed; the City’s positive and stable operating outcomes have supported pay-as-you-go capital financing and have helped North Bay limit the accumulation of debt to finance capital projects; and, North Bay displays strong governance and management characteristics.

North Bay Chief Financial Officer Brian Rogers comment, “We’re very pleased with the Moody’s credit opinion; this is a wonderful achievement given the current economic conditions. We’ve developed a solid financial plan and stuck to it, and Moody’s has recognized and rewarded us for that.”

Chirico added. “This Council and all staff have not only endorsed this plan, but have embraced it and know it is a solid plan. We congratulate our CFO, Brian Rogers and his staff for a job well done. Our Mayor and Council should be extremely proud of this accomplishment and the job they have done.”

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