Research Update: City of Regina Outlook Revised To Negative On Increased Capital Spending And Debt Issuance; Ratings Affirmed At 'AAA'

The City of Regina's after-capital performance has come under pressure due to a large capital plan, which will also increase the city's reliance on debt in the next two years. S&P Global Ratings revised its outlook to negative from stable and affirmed its 'AAA' long-term issuer credit and senior unsecured debt ratings on the city. The negative outlook reflects that, in the next two years, there is at least a one-in-three chance we could lower the ratings if operating balances remain below 15% while the debt burden surpasses 60% of operating revenues. On May 22, 2024, S&P Global Ratings revised the outlook on the City of Regina, in the Province of Saskatchewan, to negative from stable. At the same time,

...- The City of Regina's after-capital performance has come under pressure due to a large capital plan, which will also increase the city's reliance on debt in the next two years. - S&P Global Ratings revised its outlook to negative from stable and affirmed its '###' long-term issuer credit and senior unsecured debt ratings on the city. - The negative outlook reflects that, in the next two years, there is at least a one-in-three chance we could lower the ratings if operating balances remain below 15% while the debt burden surpasses 60% of operating revenues....

Research Update