Yesterday, Standard and Poor’s (S&P) published Norfolk County’s credit rating, affirming the AA/Stable rating.
The main purpose of a credit rating is to provide financial information to potential investors on the debt issued by Norfolk. The AA rating signals to investors that the County’s credit is considered high-grade.
The rating was awarded based on the County’s exceptional liquidity, solid operating surpluses, expertise of management in implementing policy changes, and prudent debt and liquidity management.
The stable outlook reflects S&P’s expectation that over the next two years the County will maintain strong financial results overall, with modest after-capital deficits. S&P also expects Norfolk to keep debt below key thresholds of operating revenues and maintain a robust liquidity position.
S&P assessed that the key rating factor for debt burden has improved in the immediate term, which staff attribute to the growing commitment of Council over the past year to mitigate debt-funded capital projects.
Though Norfolk is executing a strong financial plan as evidenced by this credit rating, there are significant risks. The County understands that aging infrastructure and growth requirements must be addressed, which may result in an increased debt burden and after-capital deficits starting in 2025. Noting this, Council and staff will continue to focus on strong financial discipline, while balancing the critical needs of the community.
A copy of the credit rating report can be found in the Credit Rating section of NorfolkCounty.ca.
Quote
Mayor Amy Martin
“I am pleased that the attention by this term of Council on financial sustainability has contributed positively to Norfolk County’s AA/Stable credit rating affirmation by Standard and Poor’s. While we celebrate this achievement, Council remains mindful of the challenges posed by Norfolk’s aging infrastructure and growth requirements. Our focus will continue to be on maintaining financial stability while addressing critical community needs.”
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