Two bond rating agencies confirm the STM's credit quality
Montreal, 24 October 2005 - Again this year, the bond rating agencies Standard & Poor’s and Dominion Bond Rating Service (DBRS) have confirmed the STM’s sound financial management by upholding their respective credit ratings of A+ et A(high).
While they acknowledge the STM’s solid financial performance and note the growing interest by both federal and provincial governments, and by the new City of Montréal, for public transit issues, the two agencies again emphasized the importance of greater involvement by these government bodies with respect to ensuring the financial stability needed to maintain the quality of transit services, essential to the population of Québec’s largest metropolitan area. Indeed, the level of investment required in the next few years to upkeep and renew transit infrastructure reaches more than $3.5 billion. If new sources of financing fail to materialize soon, the agencies’ experts predict it will be difficult for the STM to maintain the quality of its services and its financial health.
Claude Dauphin, chairman of the STM board of directors, added he was “pleased that two well-known firms in the financial community have confirmed the quality of the corporation’s management while reminding the federal, provincial and municipal governments of the importance of investing in public transportation. It is absolutely essential that elected officials at all levels help us find new sources of financing that are both stable and sustained, so that we may continue to provide the population with superior, reliable service, upkeep and upgrade our assets, and develop new services.”
- 30 -