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 continue to support the City of Ottawa's creditworthiness. Capital spending will remain elevated and debt will increase during the LRT phase 2 construction before returning to more normal levels. The city benefits from a large and stable public sector, steady population growth, and high income levels that foster stability in the region's property tax base despite increasing economic headwinds. We expect the stable economy, which is rooted in the public sector, will continue to support stability in the city?s revenues and expenditures. We believe the city's relationship with the Province of Ontario

...On June 1, 2022, S&P Global Ratings raised its rating on the City of Ottawa to `##+' from `##', following the revision of the Canadian municipal institutional framework assessment to extremely supportive and predictable from very predictable and well-balanced (see "Various Rating Actions Taken On Canadian Municipal Governments On Improved Institutional Framework Assessment, June 1, 2022,". Ottawa's economy is grounded in a large public sector, which we expect will continue to support stable revenue generation and insulate city finances through economic cycles. We expect capital spending will remain elevated, because of the ongoing LRT project, and this will spur growth in the city's debt over the next two-three years, but strong operating balances and liquid assets will support the liquidity position....

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