...S&P Global Ratings' '##' ratings on the City of Ottawa are supported by the city's very strong economy, exceptional liquidity, and strong financial management and budgetary flexibility. These credit strengths are partially mitigated by our expectation of a structural deterioration of the city's budgetary performance within our two-year rating horizon. The ratings also reflect the city's moderate contingent liabilities and debt burden, as well as the "very predictable and well-balanced" institutional framework in which Ottawa operates. We expect Ottawa's budgetary performance to weaken over the next two years as it continues to execute its large capital program that includes the C$2.1 billion Ottawa Light Rail Transit project (OLRT). Under our base-case scenario, we foresee this pushing Ottawa's after-capital deficit above 10% of total adjusted revenues from 2016-2018, and potentially beyond, compared to an estimated surplus of 1% in 2015. However, we expect the city's operating balances...
