Finance
December 21, 2007

Province�s Credit Rating Improves Again

The Honourable Tom Marshall, Minister of Finance and President of Treasury Board, said today he is very pleased that the Dominion Bond Rating Service (DBRS) has made a positive change to the province�s credit rating from A (low) stable to A (low) with a positive trend.

"This change is a strong indication that the fiscal outlook for the province is improving and that the financial result reported in our fall economic update is being viewed positively by the financial community," said Minister Marshall.

"The DBRS announcement reflects the budgetary improvement which has been driven by higher resource revenues, lower than forecast spending as well as positive changes in most economic indicators," said Minister Marshall. "However, they also caution that fiscal prudence will need to be sustained, especially in the next budget as health care cost pressures, the volatility of energy revenues and the renewal of most labour agreements next year may pose challenges."

"During the fall update we maintained that at no point in history has the province been in a better position to address massive debt and debt servicing costs. We have a per capita debt that is more than twice the national average and will cost us nearly three-quarters of a billion dollars this year, just to service the debt. We will use our unprecedented surplus to reduce the burden of debt on our people," said Minister Marshall.

Today�s positive announcement follows encouraging news from Statistics Canada earlier this week, said Minister Marshall. Statistics Canada�s third quarter population estimates show that Newfoundland and Labrador has experienced population growth for the first time since 1992. "While these are estimates for one quarter, they are certainly an indicator that the province continues to move in the right direction," Minister Marshall.

The minister said the Williams Government will continue to invest in the province�s future. "We will invest in our energy plan, in business attraction and infrastructure. Every investment will have future generations in mind and serve to strengthen and diversify our economy as we prepare for the day when oil and gas revenues are gone," said Minister Marshall.

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Media contact:
Bill Hickey
Director of Communications
Department of Finance
709-729-6830, 691-6390
billyhickey@gov.nl.ca

2007 12 21                                                      4:00 p.m.

 


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