A major rating agency is maintaining Waterloo Region’s credit score at the highest level — and it could mean big savings.
Moody’s Investors Service has awarded the region with a triple-A credit rating, based on what is calls a “diverse and wealthy” local economy, positive operating results, and strong management practices.
Just like your personal credit rating, the region’s will impact how much it’ll pay to borrow money. Though savings will ultimately depend on how much we’re borrowing, Chief Financial Officer Craig Dyer says a good credit score will help you get the lowest interest rate — and that’s good for the region’s bottom line.
“It provides savings in terms of a lower interest rate every time we go to market, which is typically once or twice a year,” says Dyer.
Now compared to if we had a bad credit score: “If we were to issue debt — say we had an average over 10 years of about 3 per cent — my speculation is it would be somewhere between 10-25 basis points lower than if we had a lower rating.”
Dyer says the region borrows money to finance major infrastructure projects, and this credit score puts those in charge of managing the region’s finances in a good position to spread taxpayer dollars further.
The triple-A rating is the highest available, and one Waterloo Region has maintained for 18 years.