Norfolk County announced yesterday that they have maintained an AA- credit rating from Standard and Poors.
S&P says that a Double-A rating only differs slightly from a Triple-A rating by a small degree, adding that the capacity to meet financial commitments would be very strong.
For comparison, Haldimand County received an AA rating in 2019 while Oxford County received an AA+ rating.
Municipalities with better credit ratings can get better interest rates when borrowing, which means less has to be passed on to the residents.
The County is crediting bold actions taken by Council to address Norfolk’s poor financial situation with helping them maintain their AA- credit rating.
They add that their multi-year plan to fix the County’s extensive financial issues also played a part.
However, they admit that the financial impact of COVID-19 and the size of the County’s infrastructure could lead to future downgrades for their credit rating as debt levels may need to increase to address their issues.
That being said, Council says they will continue to focus on maintaining strong financial discipline as they address critical needs in the community.
