A leading rating firm has increased the city of Montreal’s credit rating, citing among other things a more stable political environment for the change.
Standard & Poor's announced Thursday it was bumping up the city’s rating up one grade, from A+ to AA-. The company cited Montreal’s “exceptional” liquidity, construction activity including building permits and growing housing starts, and the political situation as rationale.
“The raising of our credit rating reflects a high level of confidence in the long-term financial strength of Montreal,” said Mayor Denis Coderre in a news release.
Pierre Desrochers, president of the executive committee, said he believes the improved rating will reduce the city’s borrowing costs.
Before Thursday, the city’s credit rating hadn’t changed since 1984.
Standard & Poor's on Montreal's credit rating
