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My unaffordable provincial government has cost me some more money:

One of the world’s biggest bond raters has cut Ontario’s credit rating to its lowest in 16 years, saying that revenue cuts by the Progressive Conservative government will exacerbate the province’s deficit and debt problems.

In a report issued Thursday afternoon, Moody’s Investors Service announced it had reduced Ontario’s long-term debt rating to Aa3 from Aa2. It was Moody’s second downgrade of the province this decade, the previous one was in 2012.

The move follows the province’s release of its fall economic statement last month, in which the first-year government of Premier Doug Ford estimated that it will run a deficit of $14.5-billion for the fiscal year ending March 31, 2019 – more than double what the previous Liberal government had projected in last spring’s budget. It also follows the release of the Financial Accountability Office of Ontario’s latest budget and economic outlook, which projected that the province’s deficits will inch higher over the Ford government’s four-year term – in part due to tax cuts that will take a bite out of revenues.
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Ontario is the country’s most indebted province, with about $325-billion of net debt. Its debt-to-GDP ratio is expected to top 40 per cent this year, second only to Newfoundland and Labrador.

The Canadian preferred share market was on wheels today:

This entry was posted on Thursday, December 13th, 2018 at 9:55 pm and is filed under Market Action. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.