The City of London has maintained its triple-A credit rating for 45th consecutive year
MOODY’S INVESTORS SERVICE has maintained the City of London’s Aaa credit rating and stable outlook, the highest rating possible.
“I was very pleased to receive this news, especially given the multitude of financial challenges municipalities faced as a result of Covid-19,” says Mayor Ed Holder in a released statement.
“The City of London has a long, proud history of financial stability and prudent fiscal management, and we’re committed to continuing that tradition ― even under exceptionally difficult circumstances. This rating serves as an ongoing testament to London’s standalone credit strength, and should also give Londoners a high level of confidence that tax-dollars are being handled in an extremely responsible manner.”
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In assigning the rating, Moody’s commented on the city’s fiscal plan, governance and management practices, including its multi-year budget. Moody’s noted the flexibility provided by the city’s budget approach to mitigate against revenue losses and adjust spending due to the disruptions caused by the pandemic. It also cited London’s recent history of positive operating results, continued application of conservative debt management practices and a measured approach in the city’s investment policies as factors in the Aaa credit rating.
“The city’s ability to maintain the Aaa credit rating through the turbulence resulting from the Covid-19 pandemic continues to be a reflection of the city’s sound financial policies and prudent financial planning,” says Anna Lisa Barbon, deputy city manager, finance supports and city treasurer. “This marks the 45th consecutive year of such a rating and we remain committed to maintaining the city’s financial strength and a healthy credit profile while supporting our community in recovery.”
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Moody’s, a leading provider of credit ratings, research and risk analysis, typically reviews the city’s credit worthiness annually, then assigns 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, meeting with City administration, officials and other independent research.