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Page 2 <br /> December 4, 2013 <br /> County of Essex - Credit Rating <br /> practices, reserve strategy, investment portfolio and budget performance; <br /> the status of residential, commercial and industrial development activities; <br /> informal discussions regarding the strengths, weaknesses and diversity of <br /> the local economy; examination of the relative strength of local <br /> municipalities, and discussions with administration regarding future <br /> challenges and opportunities, particularly concerning the management of <br /> municipal infrastructure. <br /> Rating Opinion <br /> As a result of their review, Standard and Poor's has upgraded the County's <br /> credit rating from AA- to AA rating, with a Stable outlook. (see Appendix "A" <br /> for the media release). It is significant to point out that the County of Essex <br /> continues to have one of the highest credit rating afforded to a county level <br /> of government. <br /> As described below, there exist two distinct but equally important elements <br /> expressed in a credit rating. <br /> First, the AA rating signifies that County of Essex credit status is of a high <br /> quality, and conversely low risk; which translates into savings should the <br /> County decide to issue debt. Attached, as Appendix "B", is an excerpt from <br /> Standard & Poor's Guide to Credit Rating, which provides S&P's credit rating <br /> definitions. <br /> Second, the Stable outlook rating reflects the expectation that the County <br /> of Essex's credit rating quality should remain constant in the coming years. <br /> Continued improvements in regional economic performance (noting <br /> economic diversification efforts and the reduction in regional unemployment <br /> rate), maintaining the Corporation's current approach to funding capital <br /> projects with minimal debt issuance, strong budgetary performance, <br /> including a financially managed approach to funding asset replacement and <br /> capital expansion initiatives were sighted as significant factors in maintaining <br /> the County's credit quality. <br /> Equally as important as savings in the financial markets, the rating <br /> provided by S&P represents an independent testimony to the <br /> beneficial effects of the strengthening initiatives and financial <br /> stewardship practices and policies subscribed to by Council. <br />