Moody's downgrades Ontario

Moody's Investors Service said it downgraded the issuer and long-term debt ratings of the province of Ontario to Aa3 from Aa2.

The outlook was revised to stable from negative.

The baseline credit assessment of Ontario also was lowered to A2 from A1.

Moody's also affirmed the short-term P-1 ratings of the province.

The downgrades reflect the fiscal challenges facing the province over the medium-term, highlighted by the anticipated C$14.5 billion deficit in 2018 to 2019, equivalent to 9.8% of planned revenue, with further deficits to follow, Moody's explained.

This will result in a deterioration of key financial metrics over the next three- to five-years, the agency said.

While the province has not presented a multi-year budget plan, Moody's said it expects Ontario will post multiple years of material consolidated deficits, extending the current period of consolidated deficits that began in 2008 to 2009.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.