Moody’s Investors Service has raised the City of North Bay’s debt rating to A1 from A2.
The outlook is stable.
The Toronto-based financial agency says the upgrade reflects the city’s well structured fiscal framework that has generated several consecutive operating surpluses, a relatively low burden and a diverse economy.
The city’s current capital plan calls for a greater reliance on pay-as-you-go financing to meet infrastructure needs.
However, within the next few years, the city is planning to issue up to $10 million for the construction of a water treatment facility.
Debt service costs associated with this anticipated debenture are to be covered by a special levy on water rates, introduced in 2003.
“It was an incredible piece of news,” says North Bay Mayor Vic Fedeli.
Fedeli says the improved rating should reduce the city’s borrowing costs by $10,000 for every million dollars.
