Monday, November 24th-1.1°C
22246

Moody's Investment Services affirms Aa2 credit rating for Quebec

MONTREAL - Moody's Investors Service has decided to maintain Quebec's Aa2 credit rating, saying the province has a stable outlook.

The U.S. agency says the rating reflects Quebec's ability to minimize the impact of recent and ongoing deficiits, which have accumulated since 2008, on the province's large debt burden.

Moody's noted that the Liberal government elected in April showed it is serious about achieving its budget targets by moving quickly to implement a series of measures, including a 20 per cent reduction in business tax credits.

The New York-based service says, however, that spending growth targets are "ambitious" and include some risks in execution.

The projections are for 1.8 per cent growth in 2014-15 and 0.7 per cent in 2015-16.

Michael Yake, Moody's vice-president and lead analyst for Quebec, says the province has a challenge.

"The province will need to demonstrate that they can execute their plan and achieve the planned fiscal positions in the near-term, ensuring their elevated debt burden is reduced," he wrote in the advisory released Tuesday.

He has already indicated that Quebec's gross debt should reach 54.9 per cent of gross domestic product next year when it was estimated at 54.3 per cent in March.

Quebec Finance Minister Carlos Leitao welcomed the announcement by the bond ratings service, saying it confirms the "seriousness" of the government's plan.

"Moody's has sent a very clear message, to the government, the two opposition parties and the public: we must address Quebec's public finances," he said in a statement.

The Canadian Press


Read more Business News

24035


Recent Trending




Today's Market
S&P TSX15111.13+35.95
S&P CDNX789.135.56
DJIA17810.0691.06
Nasdaq4712.97+11.102
S&P 5002063.50+10.75
CDN Dollar0.8895-0.0001
Gold1195.50-2.20
Oil76.49-0.02
Lumber331.00+4.50
Natural Gas4.035-0.231

 
Okanagan Companies
Pacific Safety0.155-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.30+0.03
Cantex0.04+0.005
Anavex Life Sciences0.178+0.008
Metalex Ventures0.03+0.005
Russel Metals31.62+0.82
Copper Mountain Mining2.24+0.06
Colorado Resources0.125-0.015
ReliaBrand Inc0.013-0.002
Sunrise Resources Ltd0.050.00
Mission Ready Services0.35+0.015

 
24130


22970

FEATURED Property
2121906Tallus Green Crescent
5 bedrooms 4 baths
$695,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...


Retirement: Health Issues

Our health is really our greatest asset and maintaining our health is of tremendous importance. You want to do what you can to ensure that health issues will not jeopardize the enjoyment of your retir...


Be quiet already!

No, you’re not crazy. There really are voices in your head. Voices that keep you from doing what you need to do during your customer care calls. It can be the voice of your teachers, your parent...

_



24185

24156


Member of BC Press Council


22707