Executive Council
Finance
October 23, 2008

Upgrade in Province�s Credit Rating Further Evidence of Strong Fiscal Management

As a result of an improved fiscal outlook and strong fiscal management, the credit rating for Newfoundland and Labrador has once again been upgraded. Dominion Bond Rating Service has upgraded the province�s long-term debt rating from A (low) to A.

"This credit rating improvement is due to the stewardship of our government and our continued commitment to building a strong and robust economic foundation for future generations," said the Honourable Danny Williams, Premier of Newfoundland and Labrador. "We have taken a very strategic and long-term approach to governance in this province, and we are reaping the dividends. Investing heavily in infrastructure, reducing the tax burden, tackling debt and investing in both economic and social programs and services has set this province on the right track.

"Like everyone, we must face the realities of the current global economic situation. The credit rating upgrade is a significant indicator of the strength of our economy. And while we are so pleased to receive this upgrade, it underscores the necessity for continued strong fiscal management including a reasonable and balanced approach to spending."

The credit rating of a province is one of the key factors in its ability to attract investors who may purchase provincial bonds. It is also a factor in the interest rate applicable to securities and used by all capital market participants in assessing the borrowing cost of a province.

"We must ensure our province continues with sustainable spending as Dominion Bond Rating Service cautioned that in order to maintain our current credit rating, fiscal discipline will be needed," said the Honourable Tom Marshall, Minister of Finance. "Strengthening our province�s financial position has been a challenge faced head-on by our government with the cooperation of the people of Newfoundland and Labrador and we must continue to face this challenge together."

Progressive debt reduction has been critical to improving the credit rating of Newfoundland and Labrador. As well, moving from the highest personal-income tax of any jurisdiction in Canada to the fourth lowest has demonstrated the determination of the Provincial Government to improve the competitiveness of the province and allow residents to keep more money in their pockets.

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Media contacts:

Elizabeth Matthews
Director of Communications
Office of the Premier
709-729-3960
elizabethmatthews@gov.nl.ca
Roger Scaplen
Press Secretary
Office of the Premier
709-729-4304, 727-0991
rogerscaplen@gov.nl.ca
Ken Morrissey
Director of Communications
Department of Justice
709-729-6985, 685-6612
kenmorrissey@gov.nl.ca
 

2008 10 23                                                     5:05 p.m.
 


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