Ratings agency warns plan to function six consecutive multibillion-dollar deficits will probably challenge finances
TORONTO — A key ratings agency has downgraded its outlook on Ontario’s financial situation to “negative” from “stable” in light of the particular Liberal government’s plan to manage six consecutive multibillion-dollar deficits.
Moody’verts Investor Services says paying pressure will challenge the province’s ability to “sustain healthy fiscal results” over a number of years.
Moody’ohydrates also says financing needs on the province’s debt —planned to be $325 billion in 2018-2019 — will probably be larger than previously believed, leading to a faster increase in interest fees.
Premier Kathleen Wynne defended the government’s pre-election spending plan, which will run a $6.7-billion deficit throughout 2018-2019, saying Moody’s change wasn’testosterone a credit downgrade, that will affect borrowing costs for any province.
The opposition Progressive Conservatives criticized the government, saying interest on the province’s debt, projected for $12.5 billion this year, is crowding out services such as health care, education and infrastructure upgrades.
Moody’s maintained Ontario’s Aa2 issuer and Aa2 senior unsecured long-term debt ratings despite the alteration of outlook. Ontario heads on the polls on June Six.