The outlook for Ontario’s long term debt has been upgraded from “negative” to “stable” by Moody’s Investors Service.
The agency also maintained the province’s debt rating at Aa2, the third-highest rating for long-term debt.
The Province’s debt rating had been sitting at ”negative” since July 2014, when it was downgraded due to skepticism that the province could eliminate the deficit by 2017-18.
However speaking of the revised outlook, Moody’s Investor Services vice president Michael Yake said “the stable outlook on the Province of Ontario’s ratings reflects our opinion that the province has presented a budget plan with little risk that the debt burden will exceed recent levels.”
They also forecast Ontario’s debt to “fall marginally across the medium-term and, as importantly, for interest expense to remain manageable as well.”
The upgrade has been welcomed by Provincial Finance Minister, Charles Sousa who in a statement issued on Tuesday evening said ”Moody’s outlook change reflects its confidence in our government’s plan to grow Ontario’s economy and create jobs for Ontarians.”
He added that ”our government remains on track to eliminate the deficit by 2017-18, and remain balanced in 2018-19. Ontario is once again projected to beat its deficit target for the seventh year in a row. By continuing to beat our fiscal targets, Ontario’s accumulated deficit is $30 billion lower than it otherwise would have been.”