November 10, 1998
(Finance)

Standard and Poor's confirms province's credit rating

Paul Dicks, Minister of Finance and President of Treasury Board, announced today that Standard & Poor's Corporation has confirmed the province's credit rating of "BBB+", with a stable outlook.

This latest rating affirmation follows the announcement by the Canadian Bond Rating Service in April that confirmed the province's "BBB" rating, and the announcement in July by the Dominion Bond Rating Service that the province's rating was being increased from "BBB"(low) to "BBB".

"The confirmation of our credit rating by Standard and Poor's indicates a continued confidence in Newfoundland and Labrador's economic prospects," said Minister Dicks. "The rating reflects our commitment to a balanced budget and deficit reduction, as well as the province's projected GDP growth based on our expanding resource-based industries."

In confirming the province's rating, Standard & Poor's noted government's commitment to prudent fiscal management and its goal of a balanced budget, despite reductions in federal transfers. The agency stated that the rating also reflects the province's high debt level, but that the outlook for economic growth in the medium term should result in an improving fiscal position and a moderation of the debt burden.

Minister Dicks noted that Moody's Investors Service has not yet completed its annual rating review. The province's rating with Moody's, as confirmed in 1997, is "Baa1".

Media contact: Paula Dyke, Communications, (709) 729-0329.

1998 11 10                       3:40 p.m.