Standard and Poor’s Rating Service has affirmed the City of Vancouver’s AA credit rating and maintained its positive outlook.
“The City has been focused on ensuring financial stability and growing a strong economy, and our efforts are working,” said Vancouver Mayor Gregor Robertson. “Through robust financial policies and management we have been able to keep taxes low and pay down our debt, while improving the services and programs our residents rely on.”
Strong financial management year-over-year has led to positive trends that support the City’s continued healthy credit rating. Between 2009 and 2012, the City of Vancouver reduced its direct debt by $155 million, and increased its cash and liquid assets from $370 million to $725 million. Further, the City implemented a 10-year strategic capital outlook and a three-year operating outlook to complement the three-year capital plan and annual operating budget.
According to the rating service’s report, “Vancouver demonstrates good financial management, which has a positive impact on its credit profile. The city has a robust set of financial policies and its annual financial statements are audited and unqualified. In addition, it provides transparent, easy-to-access disclosure to pertinent information and prepares detailed operating and capital budgets. We believe management of debt and liquidity is prudent and the business plan articulates formal risk-management strategies and policies well.”
Image by Justin Kenneth Rowley