Moody’s Investors Service affirms District of Muskoka’s “high quality” credit rating, upgrades outlook to positive
Photo credit: Martin Halek
The “strong governance and fiscal management” in the District of Muskoka is cited as the reason the region’s credit rating is staying put at Aa2 and its financial outlook is being upgraded to positive.
Moody’s Investors Service is an international bond credit rating business based in New York.
“The positive outlook reflects Moody’s expectation of continued growth in Muskoka’s liquidity levels and the district’s capacity to continue to generate strong operating results in 2021 and 2022 while factoring in lingering uncertainty caused by the coronavirus pandemic,” a report on the organization’s website reads.
Officials with Moody’s expect the district’s debt will only see a “modest” increase over the next two to three years.
In the district’s 2021 budget, they are expected to repay $41.5 million over the next decade. Of that, $31 million is going toward the redevelopment of Huntsville’s Fairvern Nursing Home.
The district’s rating was previously set to stable.
The upgrade to positive is being done because, according to Moody’s, the district has “strong levels of cash and investments which supports high liquidity coverage ratios” adding they are able to generate “significant ” operating surpluses.
“Not only does it reflect the resiliency of the district in weathering the unprecedented impacts of COVID-19, but it also reflects the commitment by Council and staff to the long-term prosperity of the District,” says Graydoj Smith, Chair of the district’s Finance and Corporate Services Committee. “Working together, we have achieved a financial rating that will benefit the district and our communities.”