Finance
January 25, 2016

Long-Term Planning for Financial Sustainability

Provincial Government Recognizes Confirmation of Aa2 Credit Rating

The Honourable Cathy Bennett, Minister of Finance and President of Treasury Board, has again reaffirmed the Provincial Government’s commitment to protect Newfoundland and Labrador’s credit ratings. These comments are in response to a statement released today by Moody’s Investor Service confirming the province’s credit rating remains at Aa2 while the outlook for the province has been changed from stable to negative.

“Our province is facing a difficult fiscal situation that continues to change with the price of oil and other economic pressures. While our government is certainly encouraged that for the second time in two weeks a credit rating agency has maintained a high credit rating for Newfoundland and Labrador, we know that hard work is required to address and protect our credit ratings in the future. Moody’s Investors Service, similar to DBRS, have both signaled that our Government Renewal Initiative and our commitment to take the actions required to put Newfoundland and Labrador back on track are positive. As we reshape our fiscal future through the Government Renewal Initiative, we will need to work closely with Newfoundlanders and Labradorians to tackle this problem together.”
‎- The Honourable Cathy Bennett, Minister of Finance and President of Treasury Board

Public engagement sessions begin today as part of the Government Renewal Initiative and all residents are encouraged to join the conversation.

“Bond rating agencies and major banks are watching this province closely. The magnitude of this problem will be addressed through short, medium and long-term measures to correct the course. It’s our responsibility as a government to consider all ideas that are put forward to achieve cost savings and increase revenue. All Newfoundlanders and Labradorians are encouraged to read our discussion document – Our Fiscal Future, and participate in a public engagement session.”
‎- Minister Bennett

Residents can participate in-person at Government Renewal Initiative engagement events or via mail, email, online, or telephone. Details can be found at www.gov.nl.ca/ourfiscalfuture/index.html

QUICK FACTS

• The Provincial Government is again reaffirming commitment to protect Newfoundland and Labrador’s credit ratings.
• Moody’s Investor Service confirmed the province’s credit rating remains at Aa2 while the outlook for the province has been changed from stable to negative.
• The multi-year Government Renewal Initiative was launched to identify actions to eliminate the province's deficit and put in place a sustainable budgetary framework.
• Details of the Government Renewal Initiative can be found at www.gov.nl.ca/ourfiscalfuture/

- 30 -

Media contact:

Jennifer Tulk Director of Communications Department of Finance 709-729-6830, 728-4104 jennifertulk@gov.nl.ca

2016 01 25                              6:45 p.m.