S&P Global Ratings has affirmed Hamilton’s AA+ credit and unsecured debt ratings with a stable outlook, while warning that continued delays in producing audited financial statements could lead to another downgrade.

The agency issued its assessment on Oct. 27, according to reporting by Joey Coleman of TPR Hamilton. Its concerns centre on the city’s recovery from the February 2024 cyberattack and the financial records affected by the breach.

Hamilton produced its 2023 audited financial statements within the past 12 months, S&P said, but audited statements for 2024 and 2025 remained unavailable.

“The City of Hamilton continues making progress in reconciling and compiling audited financial statements since the February 2024 cyberattack, although it still faces substantial delays,” the agency wrote in its report, as quoted by TPR.

S&P said the difficulties recovering data reflect weaknesses in financial management, particularly in transparency, disclosure and risk management when compared with municipalities carrying similar ratings.

However, the agency distinguished those problems from Hamilton’s budgeting and financial planning, which it described as adequate and unaffected by the attack. It pointed to the city’s four-year operating budget outlook, 10-year capital plan and solid policies governing investments, debt and liquidity.

According to the report, Hamilton has spent $22.9 million of the $47.7 million budgeted to recover and rebuild its systems following the breach.

The city intends to fund capital projects primarily through grants and reserves, but expects to issue approximately $238 million in debentures and mortgages from 2026 through 2028.

S&P projects tax-supported debt will reach 14.8 per cent of operating revenues by 2028. It considers that level modest, noting that steady principal repayments will help limit the increase.

The agency lowered Hamilton’s rating from AAA to AA+ in 2025. This year’s assessment says a return to the previous rating is unlikely, while further failures to complete audited statements could put the current rating at risk.

Sources