The Winter Olympics Just Got More Expensive
Vancouver’s credit status drops to lowest recorded level
Globe and Mail: A prominent credit-rating agency has downgraded Vancouver’s credit status to its lowest level since the firm started assessing the city in 1994.
DBRS said the one notch dip in the city’s rating from AA (high) to AA was a direct result of its decision to begin borrowing money to bail out the beleaguered, billion-dollar Olympic Village project.
Downward pressure on Vancouver’s new rating could continue for another 12 to 18 months, the agency added.
The city has already coughed up more than $450-million and is currently negotiating with Canadian banks to provide as much as another $400-million or so to finish the development in time for the 2010 Winter Olympics.
A report released yesterday by Moody’s predicted that the city’s debt will increase to about 120 per cent of operating revenue during the next two years because of financial obligations to the Olympic Village development.
Add in the billion dollar security oversight, and we’re now into some real trouble.
The games are projected to cost over $6 Billion now. Say hello to higher property taxes for years to come.
The National Post has a great article on the cost of the games here.
photo credit: TravisTruman
