FOR IMMEDIATE RELEASE:
TORONTO, October 28, 2019 - The Financial Accountability Office of Ontario (FAO) has released an Update on Ontario’s Credit Rating.
Ontario’s debt is rated by four major international credit rating agencies, based on their assessments of the province’s economic and financial outlook and future risks. These credit ratings represent the agencies’ opinions on the ability of Ontario to meet its debt-related financial obligations.
Since the FAO’s last Update on Ontario’s Credit Rating, Moody’s downgraded its rating from AA to AA- and revised its outlook from negative to stable. Fitch maintained its AA- rating but also revised its outlook from negative to stable. The other two agencies did not change their rating or outlook.
On average, Ontario’s credit rating is now lower than the ratings for Quebec, Nova Scotia, Alberta, Saskatchewan and British Columbia, but higher than Manitoba, New Brunswick, Prince Edward Island and Newfoundland and Labrador.
While Ontario benefits from a strong, investment-grade credit rating, the four agencies cite several concerns regarding Ontario’s credit outlook, including the Province’s elevated debt burden, the prolonged and on-going period of budget deficits, and an outlook for relatively moderate economic growth compounded by heightened risks.
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