New AA international credit rating enhances the Toronto brand

Toronto remains immigrants’ most preferred city and gets AA credit rating 

Toronto, Ontario’s capital remains the top city that attracts the most immigrants into Canada. Despite the higher cost of living, expensive housing and increasing traffic, immigrants still choose to first land in Toronto.

The latest AA credit rating for Toronto will further elevate the City’s status as one of the world’s favorite destinations, and immigrants’ No.1 city, staying far ahead of Vancouver and Montreal.

Top 3 cities for immigrants to Canada 

Toronto 35.9% 29.4
Montréal 12.4% 14.8
Vancouver 13.1% 11.8

AA credit rating for Toronto

DBRS Morningstar, an international bond credit rating firm, has just confirmed the City of Toronto’s AA credit rating with a stable outlook on the City’s issuer rating and long-term debt for the 19th consecutive year.

The confirmation comes on the heels of Moody’s earlier Aa1 credit rating reaffirmation for the City, citing the City’s sound governance, fiscal management, and intergovernmental support as some of the contributing factors.

According to DBRS Morningstar, the City’s large and diversified economy and capacity to raise taxes and present balanced budgets are factors that contributed to the AA rating.

DBRS Morningstar noted that while the fiscal and economic outlook may have been challenging, significant government supports (more than $1 billion) and cost mitigation ($559 million) supported balanced operating results before net capital expenditures.

The stable outlook rating reflects DBRS Morningstar’s expectation that the City’s economy will regain momentum and its credit profile will remain resilient to operating pressures.

It is expected that the City’s fiscal outlook will gradually stabilize as global and local economies continue to reopen.

What the AA rating means for immigrants

Toronto remains immigrants’ most preferred city and gets AA credit rating 

Just as individuals with high credit scores have a stronger financial standing in the banks, that is the same way a City carves a solid financial reputation with international investors when it has a AA credit rating.

“The affirmation of the City’s AA credit rating is a positive indication that the City has continued to make sound fiscal decisions despite the unprecedented challenges encountered during the pandemic. This is another sign that our city will come back stronger than ever in the wake of the pandemic and highlights the need to continue our progress getting people vaccinated and reopening our economy,” said Mayor John Tory

Maintaining a high-quality credit rating provides access to lower long-term borrowing costs for investments in infrastructure that would benefit all Torontonians.

It also increases the City’s ability to provide additional infrastructure and housing. Old and new immigrants to Canada are hoping that this will also translate to more jobs and an improved standard of living for newcomers.

Geographic distribution of immigrants in Canada

Canada                        ​100.0

Toronto ​                      35.9

Montreal ​                    12.4

Vancouver ​                  13.1

Calgary ​                        5.4

Ottawa-Gatineau        3.4

Edmonton ​                  4.1

Quebec                        ​0.6

Winnipeg ​                   3.4

Hamilton. ​                   2.3

Kitchener-Cambridge- Waterloo 1.6

London ​                       1.3

Halifax ​                       0.5

St. Catharines-Niagara 0.9

Oshawa ​                      0.9

Victoria                       ​0.9

Windsor ​                     1.0

Saskatoon                    ​0.6

Regina                         ​0.5

Sherbrooke                 ​0.2

St. John’s                     ​0.1

Barrie                           ​​0.3

Kelowna                      ​0.4

Abbotsford Mission  0.6

Greater Sudbury        0.1

Saguenay                     ​0.0

Kingston                     ​0.2

Trois-Rivieres             0.1

Guelph                        ​0.4

Moncton                      ​0.1

Brantford ​                   0.2

Saint John ​                  0.1

Thunder Bay ​              0.1

Peterborough ​             0.1

Lethbridge ​                  0.2

Belleville ​                      0.1

Non-CMA​                     8.9


Stats Canada

Toronto City

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