London earns top credit rating from Moody’s for 44th consecutive year
MOODY’S INVESTORS SERVICE, a leading provider of credit ratings, research and risk analysis, has maintained the City of London’s Aaa credit rating and stable outlook, the highest rating possible.
“The City of London has a long, proud history of financial stability and prudent fiscal management, Mayor Ed Holder states in a press release. “The fact we were able to maintain this coveted rating during the midst of a pandemic and significant economic pressures is a testament to our council members, our senior leadership team and our talented finance team. As a group, we pride ourselves on responsible use and allocation of taxpayer dollars. I believe this rating serves as the best kind of validation to that approach.”
Moody’s commented on the city’s fiscal plan and strong governance and management practices including its multi-year budget, which contributes to stable operations. Moody’s also cited London’s recent history of positive operating results, application of strict controls on issuing debt and a conservative approach in the city’s debt and investment policies as factors in the Aaa credit rating.
“The city’s achievement of the Aaa credit rating for the 44th consecutive year is a reflection of the city’s sound financial policies and prudent financial planning,” adds Anna Lisa Barbon, managing director, corporate services and city treasurer, chief financial officer. “We will continue to focus on maintaining the city’s areas of financial strength and healthy credit profile.”
Moody’s typically reviews the City’s credit worthiness annually, then assigns the city a credit rating. This includes a review of the city’s most recent audited financial statements, the most recent multi-year budget and applicable annual updates, forecasts, a site visit to the city and other independent research.