City of Calgary credit ratings affirmed with stable trend

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Calgary credit ratings affirmed

Highlights

Morningstar DBRS affirms City of Calgary's Issuer and Long-Term Debt rating at AA (high) and Commercial Paper rating at R-1 (high) with Stable trends.
Calgary accounts for 27% of Alberta's GDP, maintains a significant energy sector exposure, and is projected to outperform provincial and national growth averages in 2025.
The 2026 budget supports financial stability through modest spending increases, measured taxation, and the use of assessment growth, investment income, and reserves.

Rating decision and financial profile

As reported by Morningstar DBRS, DBRS Limited confirms the City of Calgary's Issuer Rating and Long-Term Debt credit rating at AA (high) and its Commercial Paper rating at R-1 (high), with all trends Stable.

The rating agency says the confirmation reflects Calgary's relationship with the Province of Alberta, which is rated AA with a Stable trend, along with the city's own credit strengths. These include sound economic fundamentals, strong fiscal management practices, considerable liquidity and a low debt burden.

Morningstar DBRS says an upgrade could occur if Alberta's rating is raised and Calgary delivers a material, broad-based improvement in economic diversification while preserving strong fiscal and financial performance. A downgrade could follow a sustained weakening in the city's intrinsic assessment, including materially higher debt levels and weaker operating results.

Economic base and budget outlook

Calgary remains Alberta's largest urban economy and accounts for about 27% of provincial GDP. The city is a major centre for energy, financial and professional services, and while its economy is becoming more diversified, it still has meaningful exposure to the energy sector through corporate headquarters and related business activity.

The economy continues to grow in 2025, supported by population growth, housing construction and energy-sector activity. Although growth is expected to moderate as population growth slows and trade-related uncertainty persists, Calgary is expected to outperform provincial and national averages, backed by diversification, energy activity and infrastructure investment.

Morningstar DBRS also highlights Calgary's fiscal management record, citing balanced-budget requirements, multiyear planning and flexibility on revenues and spending. The 2026 budget maintains financial stability through modest spending growth, a measured approach to taxation, and the use of assessment growth, investment income and reserve funding to manage service and infrastructure pressures.

Our earlier coverage of senior housing and skilled nursing REITs noted that demographic tailwinds and a tight new-supply backdrop were supporting occupancy and cash-flow prospects heading into the summer earnings season. We also highlighted expectations for favorable updates driven by operating momentum and acquisition opportunities, alongside examples of analysts lifting targets and forecasting 2026 FFO for key names in the space.

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