Ontario Liberals dodge credit-rating downgrade from Standard and Poor’s


mentalfloss
#1
Ontario Liberals dodge credit-rating downgrade from Standard and Poor’s

A major credit-rating agency is warning Ontario must do more to either control spending or jack up revenues if it hopes to get its budget back to balance.

Standard & Poor’s on Monday opted to leave the province’s rating unchanged, at AA– for long-term debt and A-1+ for short term credit with a negative outlook, sparing the Liberal government a downgrade just a week after reintroducing its budget. In a note, the agency cautioned that it could lower the province’s rating in the next year if it does not see progress towards the balanced budget.


“We believe Ontario’s current budget plan to restore budgetary balance by fiscal 2018 may not be achievable unless the province implements additional revenue measures or takes more aggressive cost-containment initiatives in the next three fiscal years,” the note read. “We expect to see these measures introduced in the coming months following the June election of a majority Liberal government.”

The Liberal plan to erase red ink mostly involves aggressively controlling costs: the budget promises the government will find hundreds of millions of dollars in savings, and limit spending growth to just 1.1 per cent. There are few details, however, on where cuts will be made. The budget also hikes income taxes on people making over $150,000 per year and jacks up levies on airplane fuel and tobacco.

S & P’s doubts that it will be possible to squeeze spending to the extent that the Liberals are promising, making a bigger tax hike necessary.

“In our opinion, it is a challenge for any province to sustain this low growth rate in spending, due to continuing pressures in health care and education. As a result, the government will likely have to look to revenue measures to bridge the gap,” the note said.

Ontario’s rating is the third-highest Standard & Poor’s category. Among Canadian provinces, it is two notches below triple-A rated British Columbia, Alberta and Saskatchewan, and one step up from Quebec.

The province also holds the third-highest rating with Moody’s. That agency two weeks ago changed its outlook on the province to “negative,” warning that it must see actual progress on erasing the deficit, and not just promises.

Economists and finance experts generally agree that the province’s debt is manageable. Although it is high in absolute terms – one of the largest among sub-sovereign jurisdictions – the province’s debt-to-GDP ratio is in the mid-range, at 39 per cent. The province’s economic growth, however, has been sluggish, meaning the government cannot rely on economic expansion to erase the deficit.

Ontario Liberals dodge credit-rating downgrade from Standard and Poor’s - The Globe and Mail
 
Retired_Can_Soldier
+1
#2
Yeeeehhhaaaaaaa here come the taxes!
 
Nuggler
#3
Quote: Originally Posted by Retired_Can_SoldierView Post

Yeeeehhhaaaaaaa here come the taxes!


Probably, but no worries. You moved eh ?
 
mentalfloss
-1
#4
Quote: Originally Posted by Retired_Can_SoldierView Post

Yeeeehhhaaaaaaa here come the taxes!

Meh.

I would take that over unnecessary cuts.
 
petros
+2
#5
It's going to be a long haul for ON.

Good luck.
 
Retired_Can_Soldier
#6
Quote: Originally Posted by NugglerView Post

Probably, but no worries. You moved eh ?


In the process.

Quote: Originally Posted by mentalflossView Post

Meh.

I would take that over unnecessary cuts.

Of course you would. Your interpretation of unnecessary may not meet the expectation of some, but I hope Ontario finds its way out of this mess.
 
petros
+1
#7
Until energy prices, land prices, labour costs and taxes across N.A. are as high as ON it's going to stagnate.

Expect a real estate bubble blow out shortly followed by an exodus.

Depopulation of S ON maybe an evil necessity.
 
mentalfloss
-1
#8
Quote: Originally Posted by Retired_Can_SoldierView Post

In the process.



Of course you would. Your interpretation of unnecessary may not meet the expectation of some, but I hope Ontario finds its way out of this mess.

Of course they will.

It's not even a mess to begin with.
 
coldstream
+3
#9  Top Rated Post
These idiots at Standard and Poor's were one of the Rating Agencies that completely missed the impending collapse of Housing Market.. AGW and the Investment Banks in 2008. They are a corrupt outfit.. a front organization for the forces of monetarism (commodification and free trade in currency and credit) and act solely for the benefit of the Global Free Market Capital.

Ignore them.. and re-establish a sovereign monetary system for Canada.
 
mentalfloss
#10
Economic crosscurrents buffet Ontario’s Liberal government - The Globe and Mail
 
Walter
#11
Quote: Originally Posted by mentalflossView Post

Meh.

I would take that over unnecessary cuts.

Idjit.

Quote: Originally Posted by mentalflossView Post

It's not even a mess to begin with.

Like I said, "Idjit."
 
mentalfloss
+1
#12
Walter, if we were to ask everyone who the real 'idjit' is between the two of us, I'm hoping you would be just intelligent enough to know the answer to that question.
 
Walter
#13
Quote: Originally Posted by mentalflossView Post

Walter, if we were to ask everyone who the real 'idjit' is between the two of us, I'm hoping you would be just intelligent enough to know the answer to that question.

Every time.
 
mentalfloss
#14
Good.
 
captain morgan
Bloc Québécois
+2
#15
MF, I can see why Walter has responded in the manner you see.

Considering that your attitude on this is so highly cavalier on this topic, but uber-critical on anything Fed related, the optics are that you are giving a pass one way, but demand action for all others outside the provincial jurisdiction.

It's pretty hypocritical
 
taxslave
No Party Affiliation
+2
#16
Quote: Originally Posted by mentalflossView Post

Meh.

I would take that over unnecessary cuts.

What about necessary cuts? Like the solid gold pension plans government employees now have.
 
mentalfloss
-1
#17
Quote: Originally Posted by captain morganView Post

MF, I can see why Walter has responded in the manner you see.

Considering that your attitude on this is so highly cavalier on this topic, but uber-critical on anything Fed related, the optics are that you are giving a pass one way, but demand action for all others outside the provincial jurisdiction.

It's pretty hypocritical

It's not highly cavalier at all.

I just don't subscribe to the bent ideology of cutting everywhere and being tax free.
 
captain morgan
Bloc Québécois
+2
#18
Tax free?.... Exactly who is selling that utopic dream?

It's the Use of Funds in addition to the public's sense of entitlement that is at the core of this issue
 
mentalfloss
+1
#19
It's not a sense of entitlement when you're willing to pay for it.
 
captain morgan
Bloc Québécois
+1
#20
Quote: Originally Posted by mentalflossView Post

It's not a sense of entitlement when you're willing to pay for it.


Great, make that option for payment voluntary.

... Kinda takes the wind outta the ole sails there..
 
mentalfloss
+1
#21
Quote: Originally Posted by captain morganView Post

Great, make that option for payment voluntary.

... Kinda takes the wind outta the ole sails there..

...except you would also have to find out how to provide service to only those who pay.
 
petros
#22
Quote: Originally Posted by mentalflossView Post

...except you would also have to find out how to provide service to only those who pay.

Provincial ID...which is your health card. You have a magnetic strip on you OHIP card don't you?
 
captain morgan
Bloc Québécois
+1 / -1
#23
Quote: Originally Posted by mentalflossView Post

...except you would also have to find out how to provide service to only those who pay.


Cash
 
mentalfloss
-1
#24
Quote: Originally Posted by petrosView Post

Provincial ID...which is your health card. You have a magnetic strip on you OHIP card don't you?

Insurance is the right analogy but that just proves that more members strengthens the service.

Which is why we elect a government to enable that kind of system.

Quote: Originally Posted by captain morganView Post

Cash

God no.

We need to be moving away from cash asap.

Not enough transparency.
 
captain morgan
Bloc Québécois
#25
Quote: Originally Posted by mentalflossView Post

God no.

We need to be moving away from cash asap.

Not enough transparency.

Use your brain MF... 'Cash' is an overall term that encompasses many different forms.

In the end, it is the 'system' that eluded you earlier
 
petros
#26
Quote: Originally Posted by mentalflossView Post

Insurance is the right analogy but that just proves that more members strengthens the service.

Which is why we elect a government to enable that kind of system.



God no.

We need to be moving away from cash asap.

Not enough transparency.

No cash? Are you kidding?
 
captain morgan
Bloc Québécois
#27
Quote: Originally Posted by petrosView Post

No cash? Are you kidding?

What?

Are you saying it's unrealistic to expect to transact in today's society with rainbows, the smell of cinnamon buns and karma?
 
petros
+1
#28
Rainbows fuel my hotrod.
 
mentalfloss
#29
Quote: Originally Posted by petrosView Post

No cash? Are you kidding?

Who needs cash these days?
 
Locutus
#30
 
no new posts