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Press Release

S&P Global Ratings affirms the County of Simcoe’s “AA” credit rating

 

Midhurst/ December 17, 2018 – S&P Global Ratings has affirmed the County of Simcoe's very strong AA long-term issuer credit rating for 2018.

This is the fourth year the rating agency has affirmed a AA rating along with a stable outlook for the County of Simcoe based on its healthy liquidity, minimal debt burden, and sound budgetary results. S&P Global Ratings also stated that the County's prudent financial management continues to underpin the rating.

“As we enter a new Council term, it's reassuring that a global auditing agency has confirmed that we're starting from a sound financial position," said Warden George Cornell. “The County has strong operating and budgetary oversight. Due to the prudent management of tax payers dollars, this new Council can continue to make responsible investments in our services to strengthen our municipalities and contribute to the well-being of our residents."

The rating affirmation reflects S&P Global Ratings' expectations that, throughout the two-year forecast horizon, the County will maintain robust liquidity, its after-capital deficit will not surpass 5 per cent of total revenues, and tax-supported debt will remain well below 30 per cent of operating revenues.

The stable outlook reflects S&P's expectations that the County will generate healthy operating surpluses, although large capital requirements will keep after-capital results in deficit. S&P stated that they expect the County to keep managing its capital program prudently, with a strong reliance on pay-as-you-go financing, and avoid the need to issue new debt over the next two years. As a result, S&P expects the County's tax-supported debt ratio will decrease slowly to about 8 per cent of operating revenues in fiscal 2020. S&P also notes that the County has exceptional liquidity. By its calculations, the County's average free cash and liquid assets will total about $50 million in the next 12 months and represent more than 14x the estimated debt service. S&P expects this ratio to remain well above 100 per cent during the forecasted outlook.

About S&P Global Ratings
With 26 offices around the world and a history that dates back more than 150 years, S&P Global Ratings provides high-quality market intelligence in the form of credit ratings, research, and thought leadership.

About the County of Simcoe
County of Simcoe is composed of sixteen member municipalities and provides crucial public services to County residents in addition to providing paramedic and social services to the separated cities of Barrie and Orillia. Visit our website at simcoe.ca.

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Contacts:

Collin Matanowitsch
Public Relations Manager
County of Simcoe, Service Simcoe Branch
705-726-9300 ext. 1430
705-734-8386 (mobile)
Collin.Matanowitsch@simcoe.ca

Jennifer Straw
Communications Co-ordinator
County of Simcoe, Services Simcoe Branch
705-726-9300 ext. 1036
705-790-5979 (mobile)