York region achieves AAA Stable credit rating

York Region will continue to benefit from favourable borrowing rates after achieving a Standard and Poor's AAA Stable credit rating.

Standard and Poor's cited York's strong economic outlook, operating revenue growth, high reserve levels and commitment to asset rehabilitation and replacement in its decision and accompanying analysis.

"I am extremely pleased that we have achieved Standard and Poor's highest credit rating," said York Chairman Bill Fisch. "I commend our council and Regional staff for their hard work and commitment to ensuring that all York Region taxpayers benefit from sound financial decision-making."

"The AAA Stable rating is an indicator of the credit rating agency's confidence in York Region's fiscal management policies," added Newmarket Mayor Tony Van Bynen, chair of the finance and administration committee of Regional council. "This rating allows York Region to borrow and finance debt at the best rates available."

York uses debt financing as one of several finance tools to help pay for costs associated with major projects contained in the $10.1 billion, 10-Year Capital Plan, including major roads and sewer construction, construction of the TTC Spadina subway extension and continued enhancements to Viva Rapid Transit and YRT.

To reduce reliance on debt financing, York introduced several measures, including the phased elimination of Development Charge discounting beginning spring 2007.

The Region has maintained a AAA credit rating with Standard and Poor's since 2002, and it also has a AAA credit rating from Moody's Investors Service, maintained since 2000.

Both Standard and Poor's and Moody's have taken into consideration York Region's rapid population growth, expanding assessment base and diversified economy as part of their rating, the Region reported.