Finance
April 18, 2016
The following statement was given today in the House of Assembly by the Honourable Cathy Bennett, Minister of Finance:
Government Encouraged by Credit Rating Agencies Response to Budget
Mr. Speaker, Budget 2016 outlined clear targets to address the unprecedented fiscal challenges facing this province. We are taking action to ensure we protect our residents from the potential financial impacts caused by the lack of planning and poor management of the previous administration.
One important aspect of our plan is to shield this province from increasing interest rates and use the public’s money on essential social programs and not mounting debt servicing costs. We must ensure that every available penny that we can borrow to spend, is not spent on increasing costs of borrowing.
That’s why we are pleased to see that all three credit rating agencies, Standard and Poor, DBRS and Moody’s have responded to the strength of government’s long-term plan. DBRS upgraded the outlook for Newfoundland and Labrador from negative to stable and changed the Issuer Rating and Long-Term Debt ratings to A(low). Both Moody’s and Standard and Poors made no changes to the province’s credit rating.
DBRS has said although the province is facing challenging times with the economy, they acknowledged that the “government is committed to taking credible action as reflected by the substantive and difficult decisions announced in the current budget, with more measures forthcoming in the fall.”
Moody’s stated in their response that “The challenge facing the province is substantial, although we note that the government is exercising the full extent of fiscal flexibility Canadian provinces possess.” Moody’s also acknowledges the further cost-saving measures government is pursuing, particularly through the Government Renewal Initiative.
Mr. Speaker, I am pleased to see these agencies have acknowledged the difficult decisions we have made in Budget 2016 and support our credible plan to be more efficient, to eliminate government waste and to treat the public’s money responsibly. Our plan will lay the foundation to support residents and protect future generations.
2016 04 18 2:25 p.m.