The ratings on the City of Regina, in the Province of Saskatchewan, reflect Standard&Poor's Ratings Services' view of the city's very strong economy and budgetary performance, strong budgetary flexibility, and exceptional liquidity. The ratings also reflect our assessment of the "very predictable and well-balanced" institutional framework for Canadian municipalities, Regina's strong financial management, and its very low contingent liabilities. In our opinion, the city's low-but-rising debt burden, stemming from its large capital program, partially offsets these strengths. We believe Regina benefits from its position as the provincial capital and second largest population center in Saskatchewan and that its modestly diverse economy will continue to experience good growth. Although recent economic turbulence has dampened the city's GDP growth forecasts,
