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S&P downgrades Ontario debt rating

Standard & Poor’s says province must contend with sizable yearly after-capital deficits


 

TORONTO — Standard & Poor’s has lowered Ontario’s financial rating to A+ from AA-, citing its heavy debt burden and budgetary “underperformance” compared with peers in other jurisdictions.

S&P said Monday that while Ontario continues to beat its fiscal targets and expects to close its operating budget gap by fiscal 2018, it will still have to contend with sizable yearly after-capital deficits given its large net capital spending plans.

The rating agency said the downgrade comes with a stable outlook, reflecting its belief that Ontario will continue to make slow progress in reducing its deficit.

Ontario Finance Minister Charles Sousa said he agreed with the S&P’s forecast that the province is on track to eliminate its deficit by 2018.

Sousa said he believes the S&P assessment views Ontario as having a strong, diversified economy despite recent slow growth.

But Progressive Conservative Leader Patrick Brown said the rating decline is proof that the government is mismanaging the economy.  

 


 
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S&P downgrades Ontario debt rating

  1. Quite the accomplishment, considering provincial transfers have been going up for 16 years in a row now. Ontario’s per capita allocation of federal transfers has risen from $870 in 2005 to $1482 now – that works out to nearly $10B per year. Even after adjusting for inflation (the per capita figure would be $1035 if increases were held to inflation only) the increase has been huge. Yet Wynne tries to blame the feds for her problems.

    http://www.fin.gc.ca/fedprov/mtp-eng.asp

    • All provinces get a federal transfer

  2. This is of little concern. As soon as Justin becomes PM, he will bestow lavish riches on Ontario and all will be well… OPA!

    • Why should the rest of the country be forced to bail-out Ontario just because the government there decided to be completely reckless? The fact that the Liberals have financially ruined the largest province in Canada to the point that they’re going out looking for handouts is absolutely pathetic, and a helluva good reason to never vote Liberal again.

  3. Only a Liberal moron like Sousa or Wynne would consider a credit downgrade to be a statement that Ontario has “a strong, diversified economy”. No Charles, they’re saying your province is a dead-beat.

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