Finance
July 21, 2016
Responsible Fiscal Management
Provincial Government Responds to Credit Rating Agencies Reports
The Honourable Cathy Bennett, Minister of Finance and President of
Treasury Board, today responded to recent comments from Moody's and S&P
Global Ratings.
"This government has worked very hard to lay out an
action plan that will return this province to surplus and will protect the
vital programs and services that each and every Newfoundlander and
Labradorian have come to appreciate and count on. Through Budget 2016, our
government took decisive actions to help our province through some very
challenging economic times. Both S&P Global Ratings and Moody's have
recognized that action plan."
- The Honourable Cathy Bennett, Minister
of Finance and President of Treasury Board
S&P Global Ratings, in a
recent report, affirmed Newfoundland and Labrador's A credit rating, with a
negative outlook, pointing to the province's very strong budgetary
flexibility, and strong financial management. They note that the Provincial
Government acted decisively through Budget 2016 and presented a realistic
seven-year fiscal forecast.
While Moody's has adjusted the
province's credit rating to Aa3, with a negative outlook, they indicated
that the outlook could be revised to stable if the province implements and
achieves the required revenue and expenditure targets and demonstrates an
ability to restrict debt accumulation as planned.
"Our government
has begun the work to fix the financial stability of the provincial treasury
and start to put Newfoundland and Labrador on a stable path forward. The
right decisions aren't always easy ones, but through our plan we are
changing the culture of spending in government. Investors have shown
confidence in that plan, as we have successfully completed $2.025 billion or
60 per cent of the $3.4 billion 2016-17 requirement to date. And we are
confident that once our plan is fully implemented and we are back on the
right track the credit rating agencies will recognize that we have built
fiscal confidence and accountability."
- Minister Bennett
The
Provincial Government is taking decisive action to create a multi-year
budget approach to help increase revenues, reduce expenses, eliminate waste,
and operate more efficiently and effectively.
QUICK FACTS
- S&P Global Ratings, in a recent report, affirmed Newfoundland and Labrador's A credit rating, with a negative outlook, pointing to the province's very strong budgetary flexibility, and strong financial management.
- Moody's has adjusted the province's credit rating to Aa3, with a negative outlook, indicating that the outlook could be revised to stable if the province implements and achieves the required revenue and expenditure targets and demonstrates an ability to restrict debt accumulation as planned.
- Investors have shown confidence in the Provincial Government's action plan, as Newfoundland and Labrador has successfully completed $2.025 billion or 60 per cent of the $3.4 billion 2016-17 requirement to date.
- The Provincial Government is taking decisive action to create a multi-year budget approach to help increase revenues, reduce expenses, eliminate waste, and operate more efficiently and effectively.
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Media contact:
Jennifer Tulk
Director of Communications
Department of Finance
709-729-6830, 728-4104
jennifertulk@gov.nl.ca
2016 07 21 4:35 p.m.