The City of Regina's budgetary performance in 2017 was better than we had anticipated, with stronger operating margins and after-capital surpluses, the latter supported by large capital grants. In addition, the city has been dedicating more revenue to the internal financing of its capital expenditures, which are expected to moderate in the next several years, eliminating its use of external debt financing in its current capital plan. We are therefore revising our outlook on Regina to positive from stable and affirming our 'AA+' long-term issuer credit and senior unsecured debt ratings on the city. The positive outlook reflects our expectations that the city will continue to boast exemplary budgetary performance and that its debt burden will remain very manageable at
