Niagara Region, Feb. 3, 2012 - Niagara Region has maintained its "AA" stable credit rating, with a stable outlook, as a result of "Niagara's strong liquidity and moderate debt burden" according to a report released yesterday by the bond rating agency, Standard and Poor's.
Standard and Poor's notes that Niagara Region had $295 million of net debt outstanding at the end of 2010 and its debt ratio remains conservative compared with global peers, but slightly higher than similarly rated domestic peers. Standard and Poor's commentary reflects that reserves have been used in recent years to support continuing operations and that their stable outlook reflects an expectation that Niagara Region's liquidity will not materially decline and that future debt issuances will not significantly exceed current projections.
"The affirmation of our "AA" credit rating is welcome news for the Niagara Region, especially given today's challenging economic climate," said Regional Chair Gary Burroughs. "This sends a positive message to investors and Niagara residents that the efforts and accomplishments of Regional council and our management team demonstrate that Niagara continues a strong record of fiscal management ensuring a strong financial foundation."
Standard and Poor's points to economic sector problems from continued weakness in global demand and currency fluctuations resulting in higher unemployment rates than provincial and national averages, a stagnant job market, lower per household income and a slow growth population. Standard and Poor's recognized Niagara Region has "recently revamped its economic development functions and is focusing on attracting investments that can leverage the region's good transportation links."
"This rating reaffirms why Regional council and staff must continue working together to meet the established budget targets as part of our overall taxpayer affordability strategy for Niagara residents, while ensuring our reserves remain fiscally sustainable for future generations," said Brian Hutchings, Commissioner of Corporate Services and Treasurer for Niagara Region.
For more information, contact:
Gary Burroughs
Regional Chair
Niagara Region
905-685-4225 ext. 3600
or 1-800-263-7215
Brian Hutchings
Commissioner, Corporate Services and Treasurer
Niagara Region
905-685-4225 ext. 3292