News release: August 4, 2023
Moody’s Investors Service affirms Aaa credit rating with stable outlook
BRAMPTON, ON (Aug. 4, 2023) – Moody’s Investors Service has reaffirmed Peel Region’s Aaa credit rating with a stable outlook, which is the highest rating a municipal or regional government can receive. Peel Region has held a Aaa credit rating with Moody’s Investors Service since 2011.
Peel Region’s Aaa credit rating is based on our strong governance framework and prudent financial management practices. This rating reflects our every-day commitment to managing tax dollars responsibly while delivering value-added, affordable services to residents and businesses today and over the long-term.
Moody’s stated that the affirmation reflects Peel Region’s “strong credit profile which reflects favourable economic trends that benefit the region and its constituent municipalities and drive positive fiscal results”. Moody’s also noted the following credit strengths:
- Conservative budgeting practices and track record of strong performance.
- Consistent capacity to meet fiscal targets, supported by very strong governance and forward-looking budgeting.
- Strong debt affordability and modest and declining levels of debt.
- Excellent levels of liquidity which provide strong debt, expense coverage ratios and a low debt burden.
Moody’s view is that significant bondholder protections remain despite recent legislative changes that will dissolve the two-tier structure of Peel Region and continues to view the overall institutional framework governing municipalities as strong.
Maintaining a high credit rating is in alignment with Regional Council’s Long Term Financial Planning Strategy (LTFPS), which guides regional investments in services, programs and infrastructure to meet the needs of Peel residents, businesses and community partners today and in the future. It also supports Peel Region’s 20–year Strategic Plan with a vision of building a Community for Life across Peel.
We are proud to receive a high credit rating by Moody’s Investors Service which confirms the importance of financial planning and support for our ongoing plan to ensure services remain affordable and sustainable for residents and businesses in Peel through continued access to lower long-term borrowing costs for Peel Region and the municipalities of Brampton, Caledon and Mississauga.
Davinder Valeri, CFO and Commissioner of Corporate Services, Peel Region
About Peel Region
Peel Region works with residents and partners to create a healthy, safe and connected Community for Life for approximately 1.5 million people and over 175,000 businesses in the cities of Brampton and Mississauga and the Town of Caledon. Peel's services touch the lives of residents every day. For more information about the Region of Peel, explore peelregion.ca and follow us on Twitter @regionofpeel and Instagram @peelregion.ca.