City receives ‘AA+’ Credit Rating – the second highest rating possible

HAMILTON, ON – The City of Hamilton has received a ‘AA+’ credit rating from S&P Global Ratings, reflecting the City’s continued fiscal discipline and a diversified economy that supports long-term stability. 

The ‘AA+’ rating is the second highest possible on S&P’s global scale, demonstrating Hamilton’s “very strong capacity to meet financial commitments.” S&P also cited the City’s solid operating results, low debt levels, and strong liquidity as key strengths supporting the rating.

S&P’s report notes that the change from ‘AAA’ to ‘AA+’ follows delays in completing audited financial statements due to a serious cyberattack in 2024, which temporarily disrupted parts of the City’s data and financial systems. The agency attributed the rating change to reporting timelines, while also recognizing Hamilton’s efforts to modernize and strengthen its systems.

“Hamilton’s finances remain stable, and the AA+ rating – the second highest rating possible – reflects that solid foundation,” said Mayor Andrea Horwath. “While the cyberattack caused a technical reporting delay, it did not weaken our finances. I’ve met with the City Manager to ensure the City is addressing S&P's feedback, while staying focused on strengthening our systems, maintaining transparency, and continuing to make responsible financial decisions that support Hamiltonians and our city’s future.”

The report noted that Hamilton has strong cash reserves, with enough liquidity to cover its annual debt payments nine times over. It also found that the City’s debt is expected to remain low - about 19 per cent of operating revenues by 2027 - a level which is considered as healthy and conservative.

“As demonstrated by a AA+ rating, Hamilton is financially resilient, well-managed, and focused on continuous improvement,” said City Manager Marnie Cluckie. “We’re taking steps to strengthen our financial systems, enhance accountability, and ensure long-term stability for the community we serve.”

“Hamilton’s fiscal foundation remain solid,” added General Manager of Finance and Corporate Services Mike Zegarac. “We continue to exercise disciplined financial management while modernizing our systems and improving risk oversight.”

S&P’s stable outlook reflects confidence that Hamilton will maintain its strong financial performance, prudent fiscal management, and resilient economy.

Quick Facts:

• Hamilton’s fiscal position remains strong among Canadian municipalities:
  • Liquidity coverage: Cash reserves exceed nine times annual debt service. (The City has enough reserve funds saved to pay its yearly debt costs more than nine times over.)
  • Low debt: Debt is projected to remain around 19% of operating revenues by 2027, which is considered a safe and conservative level.
  • Consistent surpluses: Operating balances of 13–14% of annual revenues reflect disciplined budgeting and fiscal prudence.
  • Diversified economy: Anchored by education, health care, manufacturing, and logistics, Hamilton’s economy continues to expand steadily despite external challenges.