News release: September 26, 2023
S&P Global Ratings affirms Peel Region's AAA credit rating with stable outlook
BRAMPTON, ON (September 26, 2023) - S&P Global Ratings (S&P) has affirmed Peel Region's AAA credit rating, with a stable outlook. This is the highest rating a municipal or regional government can receive. Peel Region has held a AAA credit rating continuously with S&P since 2002.
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.
S&P believes Peel Region's "prudent financial management and track record of strong fiscal performance will continue to support the rating, even with the uncertainty about dissolution and the impact of recent changes to Ontario cities' ability to fund themselves with development charges". S&P also noted the following credit strengths for the Region:
- Prudent financial management and planning practices will continue to support positive financial performance
- Extremely strong liquidity
- Strong operating surpluses and moderate surpluses after capital expenditures
S&P expects the Region will continue to operate as a going concern until dissolution is final. S&P anticipates that the Region's successor(s) will continue to make debenture payments without disruption. Further, S&P believes the Region benefits from an extremely predictable and supportive local and regional government framework. It has high institutional stability and systemic extraordinary support in times of financial distress 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 AAA credit rating by S&P Global Ratings 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 the Region of Peel and the municipalities of Brampton, Caledon and Mississauga.
Davinder Valeri, Chief Financial Officer and Commissioner of Corporate Services, Peel Region.
Region of Peel
About Peel's transition
The Ontario government announced the dissolution of Peel Region and the establishment of a Transition Board (TB) as part of Bill 112. The Transition Board was appointed to provide recommendations to the Minister of Municipal Affairs and Housing on a range of restructuring matters related to the dissolution of Peel Region to make Mississauga, Brampton and Caledon independent municipalities by January 1, 2025.
To learn about the Transition Board, how it will make these recommendations, and to provide feedback to the Ministry of Municipal Affairs and Housing, visit Ontario's Peel Region Transition Board website.
During our transition, Peel remains committed to providing services to residents and businesses. For information about our transition, visit Peel's transition website.
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 200,000 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.