Moody�s changes outlook on province�s credit rating

Finance Minister Lloyd Matthews said today that he is pleased Moody�s Investors Service, one of North America�s leading credit rating agencies, has changed its outlook on the province�s Baa1 credit rating from stable to positive.

According to Moody�s, the change was made "as a result of the province�s continued exercise of fiscal control, improving debt ratios of recent years and brighter economic prospects."

"This outlook change reflects the increased confidence in the economic growth of Newfoundland and Labrador," said Minister Matthews. "While we, here at home, can see the effects of our growing economy on a daily basis, it is heartening to once again see increased confidence reflected by a major credit rating agency."

In November 1999, Standard and Poor�s upgraded the province�s rating to a A minus. This was the first time since the collapse of the groundfishery, and the credit downgrades which resulted, that this province has held an A minus rating from any agency. In 1998, Dominion Bond Rating Service upgraded the province from triple B(low) to triple B. These were the first credit rating upgrades in 25 years.

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

2000 04 06                                                                 12:20 p.m.