City of Vancouver credit rating upgraded
Moody’s Investors Service today announced the outlook on the City’s Aaa credit rating has been upgraded from negative to stable. The negative outlook was assigned in 2009 as a result of the Olympic Village financing situation. The City of Vancouver’s credit outlook was upgraded from Aaa negative to Aaa stable following improved performance of the Olympic Village.
Moody's revised outlook for the City of Vancouver reflects the view that the recent sales of market condos and the gradual reduction in the City's debt levels pertaining to the Village has improved stability and resulted in a reduction in the City’s overall risk exposure.
Other factors cited by Moody’s include:
- Vancouver’s stable and predictable revenue base, which provides a steady stream of revenue to finance expenditures; and,
- an improvement in the City’s liquidity, with an increase in cash and investments from $501 million at the end of 2009 to $617 million as of December 31, 2010.
“To have our city’s credit outlook upgraded shows that our work to stabilize and promote the Olympic Village neighbourhood is paying off,” said Mayor Gregor Robertson. “As sales and rentals in the Village continue, the City receives more revenue and our financial risk and debt level decrease."