FAO RELEASES OVERVIEW OF ONTARIO’S CREDIT RATING
TORONTO, October 29, 2024 – Today, the Financial Accountability Office of Ontario (FAO) released its annual overview of the Government of Ontario’s (the Province’s) credit rating. The Province’s debt is rated by four principal international credit rating agencies, based on their assessments of Ontario’s economic and financial outlook, and future risks. These credit ratings represent the agencies’ opinions on the Province’s ability to meet its debt-related financial obligations.
In June 2024, the Province’s credit rating was upgraded by Morningstar DBRS from AA- to AA. Fitch Ratings (AA-), Moody’s Investors Services (AA-) and S&P Global Ratings (A+), each reaffirmed their credit ratings for the Province in updated assessments. In general, the credit rating agencies continue to rate the Province as an extremely strong, investment-grade borrower.
S&P and Moody’s both maintained their positive outlooks for Ontario, which suggest that a credit rating upgrade for the Province within the next two years is likely. Both credit rating agencies indicated that continued improving budget balances and a declining debt burden could lead to a credit rating upgrade.
According to the credit rating agencies, the Province’s credit rating benefits from Ontario’s large and diversified economy, high liquidity, prudent debt management program, stable federal transfers and its flexibility to adjust both tax policy and program spending. Credit rating agencies also identified challenges that negatively impact Ontario’s credit rating, including weak macroeconomic conditions, the Province’s elevated debt burden and spending pressures.
To learn more, read the full report here.
Quick Facts:
- Ontario’s average credit rating was the fifth highest among the provinces, tied with New Brunswick and Nova Scotia, and lower than the credit ratings of British Columbia, Saskatchewan, Alberta and Quebec.
- Despite having the fifth highest credit rating among the provinces, Ontario has the lowest borrowing rate (tied with Alberta).
About the FAO
Under the Financial Accountability Officer Act, 2013, the Financial Accountability Office of Ontario (FAO) 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 and follow us on X and LinkedIn.
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For further information, please contact:
Sophia Zhu l 416 931 5498 l SZhu@fao-on.org l fao-on.org