Moody’s downgrades Ontario’s credit rating, citing deficit, revenue cuts under Doug Ford
Debt burden to grow faster than expected, rating agency warns
TORONTO — Bond rating agency Moody’s has downgraded the province of Ontario’s credit rating.
The agency announced the downgrade from Aa3 to Aa2 on Thursday, 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 said 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 said the province will be subject to greater impact of interest rates increases, which it projects to jump over the next three to five years.
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