S&P Global Ratings affirmed the City of Hamilton’s ‘AA+’ credit and unsecured debt ratings on October 27, 2026. Hamilton’s rating outlook is stable, with S&P continuing to express concerns about the City’s cybersecurity failure and ongoing failures to produce audited financial statements due to the data lost caused by the security breach.
“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,” S&P wrote in its report. “In the past 12 months, it produced the 2023 audited financial statements. Nevertheless, neither the 2024 nor 2025 audited financial statements are available.”
The agency wrote the data recovery problems point to a weakness in how the city is managed. “We believe challenges in data recovery reflect weakness in financial management, particularly with regard to transparency, disclosure, and risk management practices, compared with those of similarly-rated peers,” S&P wrote. “That said, Hamilton demonstrates adequate budgeting and financial planning capacities, which were not affected by the attack. The city produces a four-year operating budget outlook and a 10-year capital plan, and follows solid policies for investment, debt, and liquidity management.”
The report states Hamilton has spent $22.9 million of the $47.7 million budgeted to recover and rebuild systems following the security failure.
The report said Hamilton intends to rely primarily on grants and reserves to fund capital projects but expects to issue about $238 million in debentures and mortgages in 2026 through 2028. “Although mitigated by stable, continuous principal repayments, tax-supported debt will rise to 14.8 per cent of operating revenues by 2028, which we consider modest,” the S&P report reads.
The agency warns it could lower Hamilton’s credit rating further if failures to complete audited financial statements continue.
The agency downgraded Hamilton’s credit rating from ‘AAA’ to ‘AA+’ in 2025. Hamilton was the only municipality in Ontario to have its credit rating during the last Council term. This year’s rating report states it is “unlikely” that Hamilton will be able to achieve a return to its previous rating.
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Published: November 10, 2026
Last updated: November 10, 2026
Author: Joey Coleman
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