Moodies warn of high debt (Ontario)
But its debt-to-revenue measure puts Ontario at the top of the naughty list.
Ontario, of course, is in the midst of an election campaign that pits the Liberals against the Conservatives as to who forms the next government.
The governing Liberals have presented a credible budget for these uncertain times, though it misses their original short-term target, forecasting a $12.5-billion shortfall, while still pledging to balance the books in line with the longer-term plan.
They also plan a jobs fund, billions in infrastructure spending and a focus on social services.
The Tories, on the other hand, promise to balance the books far earlier, slash public sector positions and create a million jobs over an eight-year period, the latter being a wonderful catch-phrase but about as unrealistic as election promises come.
Both parties should take note of the latest from Moody’s, which puts net debt as a percentage of revenue at 237.7 in the 2014-15 fiscal year, the highest in the country.
Not only the highest, actually, but far and away above the next in line, Quebec, at 189.5.
The lowest is Alberta, at 31.9.
Alberta and British Columbia are alone among the provinces in holding a triple-A rating with Moody’s, the former deemed “stable” and the latter “negative.”
“Most Canadian provinces maintained their ratings and stable credit outlook through the financial crisis and subsequent slow recovery,” Moody’s said in its report.
“However, the continued accumulation of debt and difficulty in returning to balanced budgets is increasing negative credit pressure for some provinces.”
https://www.theglobeandmail.com/report-on-business/top-business-stories/moodys-warns-canadian-provinces-on-debt-and-credit-ratings-you-listening-ontario/article18790943/