Massive deficits in Wynne-Sousa Liberal budget lead to Moody’s downgrading outlook on Ontario’s credit rating

Published on April 18, 2018

Outlook Downgrade

This morning, Moody’s Investors Service downgraded the outlook on Ontario’s credit rating to “negative” from “stable.” Moody’s referenced the 2018 Wynne-Sousa Liberal budget as a reason, saying it brings “growing spending pressure that will need to be addressed in the near future.”

“Kathleen Wynne and the Liberals broke their promise to run a balanced budget for years to come, and are plunging Ontario into years of deficits,” said Ontario PC Finance Critic Vic Fedeli. “The Wynne Liberals are trying to buy the people of Ontario with their own money, and they need to realize there are consequences to their actions.”

Ontario is the most indebted province or state in the world. The 2018 budget runs billion dollar deficits for six years, adding at least $32 billion to the provincial debt, and it doesn’t outline a credible path to balance.

“Interest on our debt is already crowding out the services we all depend on like our schools, our hospitals, and our roads. Ontario cannot afford a change in our credit rating,” added Fedeli.

“Kathleen Wynne and the Liberals are untrustworthy. If they are re-elected they are going to hike taxes and slash services. They’ve done it before, and they will do it again,” concluded Fedeli.