Laval Maintains AA+ Credit Rating, but S&P Global Revises Outlook to Negative
S&P Global Ratings has renewed the City of Laval’s AA+ credit rating for a fifth consecutive year, the highest rating held by any municipality in Québec. The agency highlights Laval’s strong and diversified economy, prudent financial management practices and stable governance framework.
However, S&P Global also revised Laval’s financial outlook from “stable” to “negative” for the 2026–2027 period, citing concerns about declining liquidity reserves and increasing financial pressure linked to major capital investments.
A Strong Rating With Noted Risks
In its analysis, S&P Global acknowledges the city’s “robust and diversified economy,” its “sound financial management practices,” and a predictable institutional environment that supports Laval’s long-term stability.
At the same time, the agency identifies a significant reduction in the city’s liquidity reserves and anticipates further pressure in the coming years. According to the report, Laval has relied more heavily on its reserves to support a large-scale investment plan and could face additional deterioration.
S&P Global notes that there is “at least a one-in-three chance” the rating could be lowered if the city’s post-capital deficits do not improve and continue to affect liquidity.
Reaction From the City
Mayor Stéphane Boyer stated that Laval’s AA+ rating confirms the city’s disciplined and cautious approach to financial management. According to him, municipal decisions have aimed to balance long-awaited infrastructure projects with responsible debt control.
He also emphasized that the city is entering a period where major upgrades to municipal assets will require ongoing financial vigilance and “responsible decisions” to maintain healthy public finances while continuing to offer quality services to residents.
Opposition Response
Parti Laval responded to the report on November 26, pointing to what it described as “concerning findings” in the S&P analysis. The party highlights a 35 percent decrease in financial reserves between 2020 and 2024, falling from 536 million dollars to 348 million, and a 53 percent increase in the municipal debt between 2021 and 2025, rising from 812 million dollars to nearly 1.3 billion.
According to Parti Laval leader Claude Larochelle, the revised outlook is “a clear warning.” He argues that several major projects—such as the Grande Bibliothèque, the municipal court building and park chalets estimated at 10 million dollars—represent investments that, in his view, are “not sustainable.” Councillor Louise Lortie added that the population must be given “a clear picture” of the financial situation.
A Challenging Financial Context Ahead
S&P Global’s updated outlook reflects the complex environment facing municipalities across Québec: rising infrastructure costs, higher interest rates and increasing operational pressures. The City of Laval maintains that its long-term financial planning remains solid and that it will continue to manage its liquidity and debt proactively.
The AA+ rating remains in effect, while the city prepares to navigate the next stages of its investment plans under heightened fiscal scrutiny.
