Sound Fiscal Management Acknowledged in Credit Rating Report

Standard & Poor’s Affirms Newfoundland and Labrador’s Credit Rating at A+

Standard & Poor’s (S&P) has today confirmed Newfoundland and Labrador’s credit rating at A+ with a stable outlook. In its release issued today, S&P acknowledged the province’s strong economy, along with the Provincial Government’s positive fiscal management and very positive liquidity position.

“I am pleased that in affirming our credit rating at A+, Standard & Poor’s has not only acknowledged our government’s strength in effectively managing the province’s finances, but also its confidence that we will continue to do so.”
- The Honourable Tom Marshall, Minister of Finance and President of Treasury Board

S&P commented that the province “possesses several attributes that mitigate the potential downside effect of its significant resource royalty revenues. Chief among them are its large cash balances, which are available as a potential fiscal stabilizer. The province has also chosen to allocate past operating surpluses primarily to nonrecurring capital investments, as opposed to base budget increases. We expect its conservative management practices to continue in the next two years.”

S&P noted the province’s debt burden is the third-lowest in Canada and that operating surpluses have allowed the province to deliver tax cuts and make capital investments without issuing debt since fiscal 2008.

Through sound fiscal management and responsible decisions, the Government of Newfoundland and Labrador is strengthening the business environment, encouraging the development of innovative industries, and diversifying the economy.

QUICK FACTS

• Standard & Poor’s has maintained the Province’s credit rating at A+.
• S&P acknowledged the province’s strong economy, along with the Provincial Government’s positive fiscal management and very positive liquidity position.

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Media contact:
Tansy Mundon
Director of Communications
Department of Finance
709-729-6830, 693-1865
tansymundon@gov.nl.ca 

2013 11 29             5:00 p.m.