The ratings on the City of Regina, in the Province of Saskatchewan, reflect Standard&Poor's Ratings Services' view of the city's strong economy and budgetary performance, good budgetary flexibility and very positive liquidity. In our opinion, large capital expenditures leading to rising debt and significant unfunded pension liabilities partially offset these strengths. A key credit strength, in our opinion, is the city's consistently strong budgetary balances both on an operating and after-capital basis relative to those of its peers. In 2012, its operating balance was about 22% (all figures Standard&Poor's-adjusted) of operating expenditures, and its after-capital accounts were 11.8% terms of total adjusted revenues. Moreover, we consider Regina's budgetary flexibility to be good and consistent with its
