Moody's Chastises Ontario

The agency gave the province an ultimatum: get your massive debt in order or face a lower credit rating.

One of the most powerful credit rating agencies in the world has given Ontario a stern warning. Moody’s has announced that unless the province takes serious steps in the next budget to reduce its deficit, its credit rating will be knocked a notch. Ontario is currently struggling with a $16 billion deficit and slow growth prospects. The deficit is believed to spring from high spending on health care and education coupled with a $30 billion decrease in demand for exports to the United States. This is no time for other provinces to be smug, either, since Ontario makes up 40 per cent of Canada’s entire economy.