Calgary was the only city to earn an overall grade of "A" in the report. (CBC)

Calgary is the top city out of 21 major urban areas in terms of living quality and economic potential, according to a new study released by the Toronto Board of Trade.

The board launched its first-ever study of the world's biggest cities on Tuesday, measuring urban locations in terms of quality of life and economic competitiveness.

"Calgary's blistering economy over the past five years may have powered it to the top, but its overall favourable environment provides a solid basis for attracting and keeping people," according to the report, which was called Scorecard on Prosperity.

Calgary was the only city to earn an overall grade of "A." Dallas was next up, garnering a "B" grade in the report, slightly ahead of another "B" city, Hong Kong.

The report was compiled with information collected before the current economic downturn.

"Calgary's continued domination is currently under threat, as weaker energy prices and tighter credit conditions have slowed oil and gas activity in the province of Alberta. This is likely to be reflected, as data from current conditions becomes available," indicates the report.

Toronto ties for 4th place

Toronto ranked fourth on the list, but only received a "C" for its efforts. Canada's biggest city was tied with Boston, London and New York on the board's listing. In fact, Toronto only managed to beat out Oslo, Rome, Barcelona and Montreal in productivity, a key measure of future economic competitiveness.

"The benchmarking study reveals the Toronto region as 'mediocre' in terms of its current economic competitiveness and at risk of further decline," said the board of trade's chief executive officer Carol Wilding in a press release.

While Toronto's showing is respectable, the city really feeds other, more prosperous areas outside the main core, the study said.

"This confirms what many people believe: that Toronto offers a generally good quality of life that will be in jeopardy without a stronger economic platform," the report said.

Vancouver made the overall list, tied at 8th. Quebec City grabbed the 10th spot while Montreal managed to get a 13th-place showing.