The Liberal government is trying to calm fears after Moody's changed its fiscal outlook for Ontario from stable to negative.
Its credit rating stays at the Aa2 level but has a greater chance of being downgraded later on with this move.
Finance Minister Charles Sousa says the "bankers aren't freaking" because of this. Sousa maintains the province has controlled its spending, despite that going up in this year's budget.
Sousa stresses the province is still finding savings. He adds tabling an austerity budget would put the economy in "peril."
The person who will be in charge of going through Ontario's finances with a fine-tooth comb says she isn't worried.
However, President of the Treasury Board Deb Matthews offers there is a challenge ahead. Matthews says that's why they created her position.
The government says it will still balance the budget by 2017-18.
A downgraded credit rating would mean the government would pay more interest on loans it takes out.
That means less money for program spending which could translate into services in healthcare and education taking a hit.