Ontario credit rating downgraded - Macleans.ca

Ontario credit rating downgraded


Credit rating agency Moody’s downgraded Ontario’s debt rating, citing concern that Canada’s most populous province might not be able to meet its deficit targets due to slow growth and ambitious spending plans, Reuters reports. The agency lowered its rating to Aa2 with stable outlook, from Aa1 with a negative outlook. The move, which could make borrowing more expensive for one of the world’s largest non-sovereign issuers of debt, follows negative action previously taken by credit rating agencies Standard and Poor’s and DBRS. On Wednesday, S&P changed its outlook on Ontario to “negative” from “stable,” though it maintained its “AA-” rating. DBRS downgraded the province’s rating in the fall of 2009, as the financial crisis hit Ontario’s key manufacturing sector.

As the CBC indicated, Moody is now rating Ontario’s debt on par with that of the Maritimes and Quebec. As Maclan’s noted last month, provincial and territorial debt now accounts for nearly half of Canada’s total fiscal burden, up from 34 per cent 20 years ago.

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Ontario credit rating downgraded

  1. Ohh look the welfare provinces are all rated the same!!

    • MMmm, by the agencies that didn’t see Enron coming, much less Fannie Mae and Freddie Mac and the ‘Great Recession’.

  2. DBRS appears a sensible rating agency. Probably why I’ve never heard of them before just now. As for S&P and Moody’s, they downgrade now, when the only thing that has really changed since 2009 is a tiny tax on the rich? Give me a break. Either they were wrong two months ago, or they are wrong now. Either way, their credibility is as bad as a credit agency thumbing up Freddie Mac and Fanny Mae. Oh, wait . . .

    • So… record deficits (and the failure of the McGuinty government to do much about them) don’t count as even a tiny change?

      • Because the record deficits that were there two months ago aren’t a problem? And I’d say McGuinty’s doing something–at least as much as Harper, and he gets a pass.

  3. Way to go McGuinty.
    Actually, way to go Ontario voters.

    • He’s very popular…amazing as that must seem to rightwingers.

      • I cannot fathom why you keep repeating that manifestly false belief. The Ontario Liberals were in THIRD in the last two polls (for the first time since the early 90s). Threehundredeight (admittedly not the most accurate) projects them as likely to win between 21 and 28 seats if those numbers held up in an election ( http://threehundredeight.blogspot.com/2012/04/pcs-lead-ndp-second-in-ontario.html ).

        McGuinty’s approval is at 28%, which I think you’ll agree is pretty low (http://www.forumresearch.com/forms/News%20Archives/News%20Releases/91725_Ontario_Issues_Poll_(Forum_Research)_(20120417).pdf ). Those are similar numbers to what George W. Bush had at the end of his term in office.

        And people have many reasons to be dissatisfied with Dalton McGuinty. Under his watch education spending has skyrocketed, but student performances have barely budged (and are in some metrics worse than in the Harris years). He clearly failed to meet high-profile campaign promises, be it his promise not to raise taxes, or his promise to close Nanticoke promptly. He has led Ontario through a period of relative economic decline. We’re now a have-not province, with record deficits.

        Moreover, his plan for economic transformation – green energy – is a pipe dream. Ontario is not well-suited for wind power. We have over 1500 MW worth of generating capacity – guess how much energy is being generated at the moment? 182 MW (it will probably be different if you check at another time). http://www.ieso.ca/imoweb/siteshared/windtracker.asp

          • That is not an approval poll – it is a best premier poll (and it is more outdated than either of the polls I mentioned). Ontarians do prefer McGuinty to Hudak – that speaks very very ill of Hudak, not well for McGuinty. Just because people would rather get cancer than AIDs doesn’t mean they like either.

          • Like I said McGuinty is very popular, quibble all you like.

            Everything else in your original post is wrong as well.

            Not everyone thinks like you do.

          • Look, leave your ideology out of it, and go on facts.

            We do indeed have lots of windpower, [we are tornado alley in fact] and yes high school graduations are way up, and McGuinty is very popular.

            We were in far worse debt in the 1840s due to investing in canals [the wind turbines of their day] and then we got hit with huge immigration from Ireland….but we’re still here, and doing well

            I know this doesn’t jibe with your standard Con mantra, but you’ll just have to get over it

          • Completely off topic but cannot post comments on the new disqus, need help Thanks in advance

    • Seeing how hard Hudak worked to mirror his policies, surely you mean Hudak/Mcguinty.(Don’t bother relying, really not interested).

  4. Stephen Harper just hit a new low, One that brands him a knave
    He slandered a man far better than he: Then
    Verbally pissed on his grave

    Take a look; he should be ashamed but he’s not