Norfolk County has maintained its high AA- credit rating with Standard and Poor’s thanks to the bold actions taken by Council to address the County’s poor financial situation.
The main purpose of a credit rating is to provide financial information to potential investors in the debt issued by Norfolk County. A high credit rating means fewer taxpayer dollars are needed to service this debt.
The maintenance of the AA- rating is largely due to the multi-year plan to fix the County’s extensive financial issues, which began during last year’s budget deliberations.
That plan included both tax and water rate increase as well as some operational changes that will reduce the County’s spending and long term financial commitments while still making investments in critical infrastructure.
Though Norfolk County is executing a strong financial plan as evidenced by this credit rating, there are significant risks. The County understands that the impacts of COVID-19 as well as the size of our infrastructure gap that needs to be addressed, may result in a future downgrades as our debt levels may need to increase to address these issues. Council will continue to focus on maintaining strong financial discipline in the future while addressing critical needs in the community.