The City of Vancouver has been placed on a credit watch as a result of the funding debacle over the Olympic Athletes' Village.
The bond rating agency Standard & Poor's posted the warning Tuesday, putting the city's “AA-plus” credit rating in jeopardy. It means the city could face higher borrowing costs at a time when it is seeking legislative approval to borrow $458-million to back the troubled development.
The city has already approved $100-million to keep the project afloat after the project's lender, Fortress Investment Group, stopped advancing funds in September. But the city's money will run out this week.
“Standard & Poor's is concerned that, without the lender's financing, the city might have to step in and finance the project, including the potential of borrowing a significant amount of debt to complete the Olympic Village,” credit analyst Stephen Ogilvie stated in his report.
