TORONTO, December 8, 2025 – 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 credit rating agencies’ opinions on the Province’s ability to meet its debt-related financial obligations.
Ontario is considered an extremely strong, investment-grade borrower and is rated at AA by Morningstar DBRS and AA- by S&P Global Ratings, Moody’s Ratings and Fitch Ratings based on a standardized scale. All four credit rating agencies currently have a stable outlook for Ontario, suggesting that they do not expect to change their credit ratings in the next two years.
Since the FAO’s last credit rating report, released in October 2024, S&P Global Ratings upgraded Ontario’s credit rating from A+ to AA-, while Moody’s Ratings revised its outlook for Ontario down from positive to stable.
The credit rating agencies indicated that Ontario’s strong credit rating is supported by its large and diversified economy, high liquidity and prudent debt management program. As well, Canada’s federal-provincial framework provides provinces with the flexibility to adjust both tax policy and program spending, in addition to continued and predictable revenue from federal transfers.
The credit rating agencies also identified challenges that negatively impact Ontario’s credit rating, including weak macroeconomic conditions from ongoing trade tensions with the United States, 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 fourth highest among the provinces, behind British Columbia, Saskatchewan and Alberta, an improvement from the fifth highest credit rating a year earlier.
- Ontario had the third lowest borrowing rate among the provinces (as of October 16, 2025), behind Alberta and Saskatchewan. In the FAO’s last credit rating report, Ontario had the lowest borrowing rate among the provinces, tied with Alberta.
About the FAO
Established by 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 or follow us on X and LinkedIn for more information on our reports.
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For further information, please contact:
Sophia Zhu | 416 931 5498 | SZhu@fao-on.org | fao-on.org