Provincial Government Has Economic Trends Taken From Stable To Negative

Posted on Tuesday, February 27, 2018 08:14 AM

It's not the kind of news any government wants to hear anytime let alone an election year.

Investors are being warned by a major credit rating agency that the Gallant government, which it calls debt-laden, is increasingly susceptible to future economic shocks.

In the first time in 14 years the Dominion Bond Rating Service, or DBRS has taken the province's economic trends from "stable" to "negative" after it had a close look at the recent provincial budget.

DBRS questions the credibility of the current fiscal plan, given the lack of flexibility to respond to unforeseen pressures or fund new programs that are likely to arise as a result of campaign commitments in the upcoming fall election.

Despite more than a decade of being in red ink the agency was concerned the government was looking to push off eliminating the deficit for another year.