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City of Vancouver gets debt rating downgrade
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| Contributor | Monsieur |
| Last Edited | Monsieur Feb 20, 2009 12:47pm |
| Category | News |
| News Date | Feb 20, 2009 12:00pm |
| Description | TORONTO -- Debt rating service DBRS has downgraded the City of Vancouver by one notch from AA (high) to AA, and said Friday the trend is negative because of the financial sinkhole at the Olympic Village.
"The rating action is the result of the recent announcement by the city that it has started drawing on a credit facility recently set up to address the financial problems of the Vancouver Olympic Village, which is expected to boost debt substantially, along with significant uncertainty regarding the financial outcome of the project," the Toronto-based rating agency said.
DBRS had placed Vancouver's rating under review in mid-January after the municipal government said it would undertake borrowing for the 1,100-unit False Creek project as the lender had stopped advancing funds in September because of cost overruns.
The village, after housing athletes for the 2010 Winter Games, is to be converted into 850 market-priced homes and 250 units of social housing. |
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