Masthead graphic based on a painting by Gudrun Thriemer.

Thursday, January 15, 2009

Justine Hunter, "Development debacle puts Vancouver on credit watch," Globe & Mail, January 14, 2009.

VICTORIA -- At the same time as it is begging the province for permission to borrow almost half a billion dollars to keep the Olympic athletes village project afloat, the City of Vancouver faces higher borrowing costs after a top bond-rating agency decided the development has tarnished the city's sterling credit rating.

  "Starting now, there is no firm financing in place for the project; the financing is day to day."
Councillor Geoff Meggs

"Depending on the scope of the city's financial obligation, we believe Vancouver's potential debt burden might not be consistent with the 'AA+' rating," Standard & Poor's credit analyst Stephen Ogilvie wrote in a bulletin yesterday.

The city was placed on credit watch after the disclosure of details concerning the financing of the Olympic village.

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