Ontario credit downgrade possible, Moody's warns
ShepherdsDog @ Fri Dec 16, 2011 12:48 am
http://www.cbc.ca/news/business/story/2 ... rning.html
$1:
The influential bond rating agency Moody's Investors Service has warned that it could downgrade the Province of Ontario's debt rating.
Late Thursday afternoon, the New York-based agency downgraded Ontario's debt outlook to "negative" from "stable."
Moody's said it's concerned the provincial government won't be able to meet its targets for reducing the deficit given the sluggish economy.
A downgrade would affect the government's $190-billion debt and likely increase future borrowing costs.
By changing the outlook, Moody's is essentially putting Dalton McGuinty's Liberal government on notice that if it does not get its fiscal house in order, the bond rating will change. That would mean more taxpayer money going towards interest.
"The negative outlook on the province reflects the softening economic outlook, Ontario's growing debt burden, and the extended timeframe to achieving a balanced budget," said Moody's assistant vice-president Jennifer Wong.
"If a credible plan to address the fiscal imbalance and stabilize the debt burden is not implemented in the next provincial budget, downward pressure on the province's Aa1 rating would emerge."
Late Thursday afternoon, the New York-based agency downgraded Ontario's debt outlook to "negative" from "stable."
Moody's said it's concerned the provincial government won't be able to meet its targets for reducing the deficit given the sluggish economy.
A downgrade would affect the government's $190-billion debt and likely increase future borrowing costs.
By changing the outlook, Moody's is essentially putting Dalton McGuinty's Liberal government on notice that if it does not get its fiscal house in order, the bond rating will change. That would mean more taxpayer money going towards interest.
"The negative outlook on the province reflects the softening economic outlook, Ontario's growing debt burden, and the extended timeframe to achieving a balanced budget," said Moody's assistant vice-president Jennifer Wong.
"If a credible plan to address the fiscal imbalance and stabilize the debt burden is not implemented in the next provincial budget, downward pressure on the province's Aa1 rating would emerge."
saturn_656 @ Fri Dec 16, 2011 6:56 am
McSquinty is going to jack up my taxes again. 
OnTheIce @ Fri Dec 16, 2011 7:24 am
Not much we can do when we voted in this guy for a 3rd straight time.
Bruce_the_vii @ Fri Dec 16, 2011 7:55 am
Downgrading by Moody's won't slow McGuinty. He's a borrow and spend type of politician.
saturn_656 @ Fri Dec 16, 2011 8:05 am
OnTheIce OnTheIce:
Not much we can do when we voted in this guy for a 3rd straight time.
I have never voted for McGuinty.
DanSC @ Fri Dec 16, 2011 8:17 am
After the "Guys, these mortgage securities are AAA, promise!" shenanigans, I'm surprised people still trust Moody's.
EyeBrock @ Fri Dec 16, 2011 8:23 am
No surprise here. Give more of my money to Samsung Dalton.
Bloody Tories. They were too shit to beat this wanker. Hudak and Tory, I blame you guys too.
BartSimpson @ Fri Dec 16, 2011 9:55 am
Downgrades like this are inevitable for liberal (not 'Liberal') governments world wide. Europe elected a bunch of conservatives and they're managing the crisis okay but in the US and Canada we still have pockets of politicians whose dependent constitutencies refuse to acknowledge that the fat times of borrorwed prosperity are over.