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Moody's downgrades Ontario's credit rating

Last Updated Dec 15, 2018 at 7:14 am EDT

Vic Fedeli, Ontario Minister of Finance tables the government's Fall Economic Statement for 2018-2019 at Queen's Park in Toronto on Nov. 15, 2018. THE CANADIAN PRESS/Nathan Denette

TORONTO — Bond rating agency Moody’s has downgraded the province of Ontario’s credit rating.

The agency announced the downgrade from Aa2 to Aa3 today, citing the province’s $14.5-billion deficit in 2018-2019 and projections that it will continue to post deficits in the coming years.

Moody’s says the combination of increased debt and slow revenue growth will result in a faster than previously anticipated increase of the province’s debt burden.

The agency says the province will be subject to greater impact of interest rates increases, which it projects to jump over the next three to five years.

Finance Minister Vic Fedeli blamed the previous Liberal government for the creating the circumstances that have led to the credit downgrade.

But Moody’s also says that actions taken by the current government to reduce revenue levels will add to the budgetary pressures facing the province. 

The Canadian Press