MEDIA RELEASE: FAO releases Update on Ontario’s Credit Rating

(TORONTO, September 18, 2018) - The Financial Accountability Officer of Ontario (FAO) has just released an Update on Ontario’s Credit Rating.

Ontario’s debt is rated by four principal 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.

The commentary reveals that Ontario benefits from a strong, investment-grade credit rating, which has been reaffirmed this year by all four agencies. However, both Moody’s and Fitch revised their rating outlook for Ontario’s debt from stable to negative, reflecting their assessment of the province’s increased credit risk.

While Ontario’s rating remained unchanged, the four agencies cited several concerns regarding Ontario’s credit outlook, including the province’s high and rising debt burden, the projection of on-going deficits, and the risk of a future economic downturn.

Over the next three years, the Province will need to refinance $75.2 billion in maturing debt.  New investments in capital assets along with any funding needed to finance budget deficits will further add to province’s borrowing requirements. A credit rating downgrade could increase the cost of this future borrowing, placing additional pressure on Ontario’s budget.

Click here for the commentary.

About the FAO

Under the Financial Accountability Officer Act, 2013, the Officer provides independent analysis on the state of the Province's finances, trends in the provincial economy and related matters important to the Legislative Assembly of Ontario. Visit our website at http://www.fao-on.org/en/ and follow us on Twitter at https://twitter.com/InfoFAO.

-30-

For further information or to arrange interviews, please contact:

Kismet Baun l (416) 254-9232 l kbaun@fao-on.org l fao-on.org