DBRS confirms Montreal

DBRS said it confirmed the long-term debt rating of the City of Montreal at A (high) with a stable trend.

Prudent financial management, a constant focus on spending discipline and a dynamic economy continue to provide support to the credit profile of the city, the agency said. In particular, DBRS said the considerable efforts exhibited by the city in recent years to streamline operations and to increase efficiency have helped offset some of the pressure related to rising pension expenses and prevent undue erosion in operating results.

However, infrastructure needs continue to grow, which maintains upward pressure on the city's already heavy debt burden, and the student protests underway in Montreal since March also add near-term uncertainty to the outlook, the agency said.

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