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2003 News Releases
Moody’s upgrades City of Winnipeg credit rating 

WINNIPEG - October 17, 2003 - Moody’s Investors Service, New York has upgraded the City of Winnipeg’s credit rating to Aa2 from Aa3. This is the City’s second credit upgrade this year. On January 14, Standard and Poor’s improved the City’s rating to AA from AA-. It is also the second upgrade by Moody’s in the last two years. In June 2001, Moody’s upgraded the city from A1 to Aa3.

According to Moody’s, “the upgrade was prompted by recent improvements to the City’s debt profile, owing to prudent fiscal planning and strong financial results.”

“To achieve two upgrades in the same year and to receive two upgrades from Moody’s within a span of two years is a remarkable achievement for our City,” said Mayor Glen Murray. “It helps confirm that this Council is fiscally responsible and builds trust that our financial management principles are sound. As we propose a New Deal on taxation, we’re well viewed by the financial markets to take on the additional challenges of tackling our infrastructure requirements.”

“We’ve worked hard to achieve this rating,” said Councillor Bill Clement, Chairperson of the Standing Committee on Fiscal Issues. “This upgrade is based on our consistent pattern of budgetary management and fiscal discipline. The sale of Winnipeg Hydro has also provided the city with a consistent revenue stream while releasing us from the potential risks of expensive hydro capital upgrades.”

Moody’s also commented favourably upon the city’s shift towards pay-as-you-go financing for tax-supported capital projects, which has curtailed new borrowing requirements. Moody’s sees further improvements to the city’s debt profile over the medium term.

Credit rating agencies provide an objective third party perspective on the financial management of various levels of government and organizations. Credit rating reviews are one of the most significant factors used by the capital markets to determine the cost of borrowing.

Last update: 01.05.2004

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