The Provincial Government has maintained a stable credit rating of Aa2 from Moody�s Investor Services (Moody�s). Information released today highlights strong governance and management practices in a changing provincial economy as contributing factors to continued fiscal stability.

"I�m pleased to see affirmation that our province continues to maintain a steady financial position while navigating the rough waters of the current economic climate," said the Honourable Tom Marshall, Minister of Finance and President of Treasury Board. "This is the second credit rating agency in less than six months to reaffirm our government�s strong fiscal management and governance practices. This is another clear indication that the plan we put in place is leading us down the right path for a sustainable and prosperous tomorrow."

The report highlights reduction in debt levels and revenue growth in non-renewable resources as factors contributing to enhanced fiscal flexibility and positioning the province to address potential economic pressures in the future. However, the company cautions that revenues are subject to the volatile nature of the oil market.

"We cannot relax our fiscal prudence," said Minister Marshall. "Our efforts to pay down the debt and make sustainable investments to stimulate the economy are working and we will maintain this approach."

Moody�s Investor Services is an independent credit rating agency. The agency is one of three that regularly rates the finances of the Provincial Government. The department will provide an economic and fiscal update later this fall.

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Media contact:

Ronalda Walsh
Director of Communications
Department of Finance
709-729-6830, 685-1741
ronaldawalsh@gov.nl.ca