Barrie’s bond rating is moving on up.
Credit rating agency S&P Global has changed its assessment of the city from stable to positive, which will lead to lower borrowing costs. The city has a AA+ rating from the firm, one step below AAA, the top ranking.
S&P, which produces annual reports, said it was moved to change Barrie’s classification because it anticipates the city will borrow less going forward and the community’s economic growth is strong enough to provide additional tax revenue needed for future infrastructure investments.
“The positive outlook reflects our expectation that revenue growth will bolster Barrie’s budgetary performance and mitigate borrowing needs such that the city’s debt burden will continue to fall in the next two years,” reads the report.
Barrie Mayor Alex Nuttall heralded the revised rating as “great news” for the city that “affirms the strength of Barrie’s economy and provides confidence to both residents and business owners.”
He also noted that under his leadership, council is “committed to being financially responsible while making necessary investments to support our growing community,” and that an improved credit rating will “help us keep taxes down while still maintaining essential programs and services.”
According to S&P’s report, Barrie is expected to “continue generating healthy operating surpluses” of some 17 per cent of operating revenue in the next two years,” while its strong population growth is “expanding the taxable assessment base, and moderate property and user rate increases.”
The agency also estimated that Barrie’s debt burden will fall to 52 per cent of revenue in 2026, owing to planned repayments that will “exceed Barrie’s modest borrowing needs of about C$50 million over 2025 and 2026.” S&P said hitting that debt benchmark is “materially lower than our previous forecast and is more in line with that of ‘AAA’ rated peers.”
