Wednesday, October 22nd12.6°C
23840
23129

Manitoba government's credit outlook goes from stable to negative

WINNIPEG - A major credit-rating agency has downgraded its outlook for the Manitoba government's finances and raised new doubts about the NDP's promise to balance the books by 2016.

Moody's Investor Services on Monday maintained the government's credit rating at Aa1, but switched its outlook from stable to negative, due to a string of deficits that started in 2009.

"Expenditure pressure and prospects for modest (economic) growth will make it challenging for the province to achieve its target of a return to a modest surplus and stabilizing debt burden by 2016-17," Moody's analyst Kathrin Heitmann wrote.

"Manitoba's debt burden is expected to reach about 150 per cent of revenues in 2016-17 versus ... 101 per cent recorded in 2008-09. This trend in debt metrics represents a risk to the province's credit worthiness."

Finance Minister Jennifer Howard called the decision disappointing and said it will result in a small increase in the interest the province pays on its borrowings.

Howard said she remains committed to balancing the budget by 2016 without major tax increases, but added the province will not fixate on that target if it means turning its back on victims of floods or other disasters.

She also said the province could have balanced the budget sooner through deep spending cuts, but felt there is more to government than spending cuts and a balance sheet.

"We look at the impact on our kids. We look at how we want to build a province that our children want to live in, that our parents want to grow old in."

Manitoba is not alone. Other provinces such as Ontario have had their outlook downgraded this year by Moody's. Still, the decision is bound to provide political ammunition for the Opposition.

The NDP government started running deficits in 2009 and said during the 2011 election campaign that it would balance the budget by 2014 without major tax increases.

After winning the 2011 election, the government expanded the provincial sales tax to cover more items, including home insurance, and pushed back its target date for balancing its books. In 2013, the province raised the sales tax to eight per cent from seven.

The next provincial election is expected in April 2016.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14312.07-235.64
S&P CDNX808.00-14.28
DJIA16461.32-153.49
Nasdaq4382.847-36.632
S&P 5001927.11-14.17
CDN Dollar0.8899-0.0009
Gold1241.30-10.3999
Oil80.01-1.95
Lumber329.90+0.30
Natural Gas3.655-0.056

 
Okanagan Companies
Pacific Safety0.12+0.02
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.055-0.025
Anavex Life Sciences0.198+0.006
Metalex Ventures0.05+0.005
Russel Metals32.53-0.56
Copper Mountain Mining2.10-0.07
Colorado Resources0.145-0.005
ReliaBrand Inc0.013+0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.405-0.055

 



23434

FEATURED Property
2089647750 Francis
5 bedrooms 4 baths
$398,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_








Member of BC Press Council


22632