Credit Agency downgrades outlook for Ontario

Moves ratings from stable to negative

Moody's credit rating agency has changed Ontario's debt and issuer ratings to negative from stable, while at the same time reaffirming its Aa2 ratings.

Moody's Investors Services says the change reflects its assessment of the province's ability to meet its medium term fiscal targets, especially with weak growth and higher than anticipated
deficits projected for the next two years.

The ratings agency didn't wait for the Liberals to introduce their budget July 14, but Premier Kathleen Wynne has said it will be identical to the May 1 budget that was rejected by the opposition parties, triggering the June 12 election.

Moody's vice president Michael Yake says the agency viewed the May budget as ``credit negative'' for the province.

Finance Minister Charles Sousa says the recently re-elected Liberal government remains committed to eliminating the $12.5 billion deficit by 2017-18 even though it did ``adjust'' its short
term deficit targets.

Sousa says the Liberals have cut expenses and become the leanest government in Canada with the lowest per-capita spending of any province.

Leave a comment:

showing all comments · Subscribe to comments
  1. Nemesis posted on 07/02/2014 09:21 PM
    Sure you will Sousa. Keep driving industries and citizens out of Ontario because of high taxes and utility costs. Like most Libs you've never had a tax payers dollar you don't want to waste.
  2. Angry Bill posted on 07/03/2014 10:54 AM
    Crazy.. under the libs, our debt has grown exponentially, and they plan on spending well over 100 million more on top of that. And he claims we have the leanest government in Canada?

    I expect these kinds of outrageous claims from this fiberal government, but what really boggles my mind are people who gobble this crap up as if it were true.

    Sousa, if anything you were saying were true, I doubt very much Ontario would have had its credit rating slashed.

    So what, the lib fan boys say. Well, I'll tell you so what. The libs WILL continue to borrow hundreds of millions of dollars to pay for their election bribes to short-sighted unions, teachers, etc. Having a lower credit rating means that we will now pay MORE on interest charges on what the libs plan on borrowing. Your credit rating goes down, your interest rate that you have to pay goes up. That's the way it works, kids.

    Enjoy the next 4 years that you voted for. This is just the beginning.
    1. Sammy from Scarborough posted on 07/03/2014 11:45 AM
      @Angry Bill And here I thought you could read, Bill.
      There has been NO downgrade in the province's rating.
      It's still an Aa2 rating.

      Even if it were to be downgraded - that will just return it to the level that your hero, Harris, took it to in 2002.

      Get the knots out of your shirt - the world did not end and, yes, the sun will rise again tomorrow..
    2. Karl Burgin posted on 07/09/2014 10:49 AM
      @Sammy from Scarborough Wow....heavy denial seems to be your biggest character trait, huh?

      But then again, all signs point that you voted Liberal.
      Don't worry SAMMY- unfortunately all of us will get what YOU voted for soon enough.
    3. Karl Burgin posted on 07/09/2014 10:51 AM
      @Angry Bill Agreed. I've heard the numbers yesterday from the experts- and it ain't looking good.
      On the other hand, it did put a smile on my face to see Horwath railing against her former bed-mate Wynne. But I'm sure they'll kiss and make up later.
    4. john posted on 07/09/2014 01:17 PM
      @Karl Burgin horwath has not gone out of closet yet that's for sure .
  3. john posted on 07/07/2014 12:15 PM
    see what happens when shit hits the fan . shit all over the place .
  4. Next stop: Rock bottom posted on 07/09/2014 11:01 AM
    I can't wait to see the Wicked Wynne of the West scramble to figure out how to pay for all of her union masters, bureaucrat friends, and social programs when there are no private sector employees to collect taxes from anymore.
  5. JohnLocke posted on 11/19/2014 12:03 PM
    Still waiting for the crooked OPP, whom she paid off, to file criminal charges against her. But it seems that their "investigation" / whitewashing efforts have turned up nothing.

    It sure sucks when half of your government should be in prison and is not, and instead is figuring out ways to further destroy the province with their malfeasance and mismanagement.
showing all comments

Sign Up For Breaking News Alerts

Becoming a member only takes 60 seconds! Members get access to exclusive information and products that non-members do not, including concert ticket presales, trips, advance notice on upcoming entertainment events, movie screening passes, music giveaways and more!

Login with Facebook

Stay connected 24/7! Receive breaking news and programming alerts right to your inbox. CLICK HERE to sign-up.

Today's Poll

Did you take part in Earth Hour on Saturday night?

Voting is restricted to one vote every 24 hour(s) VoteResults

Top Stories