Standard and Poors rating services has realised the postive performace of the three main financial pillars found in the  Toronto financial cluster, them being banking, insurance and securities. Standard & Poor’s Ratings Services raised its outlook on the City of Toronto to positive from stable to reflect its robust economic performance, improved financial flexibility, and modest debt burden, and affirmed its ‘AA’ long-term issuer credit and senior unsecured debt ratings on the city.

 The positive outlook reflects Standard & Poor’s expectation that the city will implement two new taxes and that the new tax revenues, coupled with increasing grants from senior governments, will significantly improve operating and after-capital results.

 Toronto’s financial cluster ranks among the world’s elite in terms of performanec and and growth expectations. It is still not quite on a comaparable level to New York and Chicago (the two largets financial clusters in the United States) but is predicted to grow at much higher rate than these two due to the fact that it is much more affordable for new financial institututions to start-up and establish themselves in Toronto than anywhere else in the world, including New York and Chicago.

According to Standard and Poor analysts, Debt issuance should not exceed what the current capital plan forecasts, the rating agency cautioned. “We also expect that the local economy will continue to produce solid results and positive taxable assessment base growth. The future for the Toronto financial  cluster infrastructure looks very positive as it will grow and become a larger player in the world of both banking and securities, while also providing the young adults of the country with a multitude of job opportunities.

Links: http://www.cnbc.com/id/23605649/

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