On July 13, 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 County. The AA rating tells investors that the County’s credit is considered high-grade.
The score was awarded based on the County’s exceptional liquidity, moderate debt reliance, adequate expertise in implementing policy changes by management, and prudent approach to debt and liquidity management.
The stable outlook reflects S&P’s expectation that over the next few years the County will continue to generate solid operating surpluses while making significant investments in capital expenditures, and will maintain a strong liquidity position with moderate reliance on debt.
Though Norfolk County is executing a robust financial plan as evidenced by this credit rating, there are significant risks. The County understands that the aging infrastructure requirements that need to be addressed will result in an increased debt burden and after-capital deficits starting in 2024. 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 on the County website.