Credit Rating
Moody's Maintains AA1 Credit Rating for The District Municipality of Muskoka with Stable Outlook
Moody's Investors Service has reaffirmed the AA1 credit rating of The District Municipality of Muskoka, reflecting its robust financial performance with a history of strong operating results. Conservative budgeting and stable revenues support exceptional liquidity levels which provide strong coverage of debt and expenses. The rating also reflects very strong debt affordability with low levels of debt. The outlook remains stable.
Moody's acknowledges District's consistent track record of prudent fiscal management, marked by strong liquidity, healthy cash reserves, and a stable revenue stream. The District has demonstrated resilience in navigating inflationary economic challenges while consistently delivering on its financial commitments, reflecting management's efforts to build up liquidity balances to provide support against future operating and capital needs.
Key factors contributing to the maintained AA1 rating include District's:
- Exceptional liquidity levels provide significant debt and expense coverage
- Very strong debt affordability and low debt levels
- Fiscal profile benefits from stable revenue sources and prudent expense management
- Sound governance underpinned by conservative budgeting
The main purpose of a credit rating is to provide confidence and financial information to potential purchasers/investors in debentures issued by the District. The benefits of a strong credit rating are that it:
- Reduces the interest rate costs on new debt issues
- Allows for more flexibility in negotiating the length and terms on new debt
- Generally increases the market for the District's debentures
In addition, the annual credit rating and analysis provides a snapshot of the financial position and performance of the corporation, by an independent agency, for both the public and District Council to review.
The stable outlook indicates Moody's expectation that the District will maintain its strong credit metrics and operational performance over the medium term. The stable outlook reflects Moody’s view that the District’s credit profile will remain resilient to near term operating uncertainty due to global geopolitical pressures, given the stability of the majority of its revenue sources.
District’s management remains committed to sustaining its credit quality and continues to focus on prudent financial strategies to navigate potential future challenges while capitalizing on growth opportunities.
This reaffirmed credit rating meets the action areas and measures of #8 Objective: Future thinking - Plan and invest so that we have the services and infrastructure our residents and communities need - now and in the future (8.1 Continue to strengthen our financial health) of the District’s Strategic Plan Objective.
Asset Management
Ontario Regulation 588/17 (O. Reg. 588/17) under the Infrastructure for Jobs and Prosperity Act, 2015 requires all Ontario municipalities to develop a strategic asset management policy and an asset management plan that includes all municipal infrastructure assets.
Our Strategic Asset Management Policy provides a mechanism for adopting a consistent, coordinated and collaborative approach to asset management across the District by providing strategic direction to staff and specifying roles and responsibilities for ensuring successful development and effective implementation of our asset management plans.
Our 2018 Asset Management Plan was the District's baseline plan for future budgeting and long-term financial planning. An update to the District's 2018 Asset Management Plan - Core Assets was completed and approved by District Council on June 20, 2022.
The District's 2024 Asset Management Plan - State of Infrastructure Report was approved by District Council on July 15, 2024 and reflects all of the District's infrastructure assets with detailed information on current service levels and the lifecycle activities required to maintain current service levels.
The District’s 2025 Asset Management Plan (AMP) - Bridging the Gap: Enhancing Muskoka's Infrastructure Asset Management was approved by District Council on July 21, 2025 through Report 10(2025)-3. This comprehensive asset management plan is the District’s first long-term financial plan to maintain District infrastructure and it includes both current and proposed service levels.
Future provincial infrastructure funding is conditional upon the municipality having an up-to-date asset management plan.
Performance Management
The District is committed to performance measurement for analysis of how our various programs, service levels and costs compare to other regions.
Performance measurement information is used in budget deliberations and to identify areas where additional resources may be required. The District currently participates in the Municipal Competitiveness Study, developed by BMA Management Consulting. This yearly municipal study compares general statistics, tax policy, ratios and rates, water and sewer and economic development programs.
Annual Energy Consumption Reports
Ontario Regulation 397/11 under the Green Energy Act, 2009 requires that all municipalities report annual energy consumption and greenhouse gas emissions from the operation of specific facilities.
The District's reportable facilities include:
- Administrative offices
- Ambulance stations
- Storage facilities
- Facilities related to the pumping and treatment of water and sewage
| Energy Conservation and Demand Management Plans |