City of Ottawa

This report does not constitute a rating action. Overview Credit context and assumptions Base-case expectations A large public sector supporting steady economic growth and effective management practices will support the City of Ottawa?s creditworthiness. Capital spending will remain elevated, and debt will increase during the light-rail transit (LRT) phase 2 before returning to more normal levels. --The city benefits from a large and stable public sector, steady population growth, and high income level that foster stability in the city?s property tax base. --We expect the stable economy, which is rooted in the public service, will continue to support city revenues and expenditures; and any residual COVID-19 pandemic implications will be minimal. --Ottawa?s long-term financial management practices will continue to allow

...S&P Global Ratings' long-term issuer credit and senior unsecured debt ratings on the City of Ottawa, in the Province of Ontario, are `##'. As COVID-19 restrictions ease, we expect that Ottawa's economy will recover largely in line with that of other municipalities in Ontario. We believe Ottawa's stable economy, grounded in the public service, will support the recovery. The city will continue to prudently manage expenses while also receiving support from higher levels of government both for pandemic-related operating expenses and the LRT project. This will help the city to maintain its good operating balances and moderate after-capital deficits. We expect capital spending, especially for the LRT project, will spur growth in Ottawa's debt over the next two-three years, but strong operating balances and liquid assets will support the city's liquidity position....

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