Finance
November 21, 2014

Demonstrating Sound Fiscal Management for Long-Term Prosperity

Newfoundland and Labrador Maintains A Credit Rating

Dominion Bond Rating Services (DBRS) has again confirmed Newfoundland and Labrador’s credit rating at A, with trends remaining stable.

In its annual rating report, DBRS acknowledged the Provincial Government’s established record of fiscal management, competitive personal income tax structure, strong liquidity position and significant energy resources as strengths in maintaining the rating. DBRS also points out that the Provincial Government continues to advance the Muskrat Falls hydroelectric project, which when fully operational will help to further diversify the provincial economy.

“We are pleased that Dominion Bond Rating Services has once again maintained the province’s credit rating at A. This is a significant acknowledgment of the work we have done to ensure our long-term prosperity and sustainability while noting our proven record of sound fiscal management, competitive tax structure and economic development.”
- The Honourable Ross Wiseman, Minister of Finance and President of Treasury Board

While DBRS acknowledges the province’s record of sound fiscal management, it cautions that commodity price weakness and slowing economic growth could threaten existing fiscal targets.

“DBRS is confirming what we already know – recent commodity price weakness, the price of oil in particular is causing us to reassess our fiscal path. As we explore strategies to address current fiscal challenges, we want to make sure that we understand clearly the impact of the decline in the price of oil. We also need to look at what impact this will have for the balance of the fiscal year. I’ll have more to say about that in the mid-year economic update in December.”
- Minister Wiseman

QUICK FACTS

• Dominion Bond Rating Services (DBRS) has again confirmed Newfoundland and Labrador’s credit rating at A, with trends remaining stable.
• In its annual rating report, DBRS acknowledges the Provincial Government’s established record of fiscal management, competitive personal income tax structure, strong liquidity position and significant energy resources as strengths in maintaining the rating.
• While DBRS notes the province’s record of sound fiscal management, it cautions that commodity price weakness and slowing economic growth could threaten existing fiscal targets.

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Media contact:

John Tompkins Director of Communications Department of Finance 709-729-6830, 728-7762 jtompkins@gov.nl.ca

2014 11 21                                             2:20 p.m.