Montréal, City of: Rating Report

DBRS Limited (DBRS) confirmed the Issuer Rating and Long-Term Debt rating of the City of Montréal (the City or Montréal) at A (high) with Stable trends. DBRS is encouraged by the policy and budgetary continuity in the City after the recent municipal election and introduction of the first budget under Mayor Valérie Plante, and by positive economic momentum characterized by low and falling unemployment and solid economic growth. Critical rating factors, including Montréal’s large, diverse economic structure, sound fiscal management framework and prudent financial management practices, suggest upward pressure on the rating; however, the ratings are primarily constrained by a rising debt burden associated with the capital plans of the City and the consolidated transit agency Société de transport de Montréal (STM).