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Ontario Downgraded to Aa2 on Growing Debt Burden, Moody’s Says

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Author Topic: Ontario Downgraded to Aa2 on Growing Debt Burden, Moody’s Says  (Read 140 times)
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« on: April 26, 2012, 07:03:05 pm »

Ontario Downgraded to Aa2 on Growing Debt Burden, Moody’s Says
26 April 2012, by Cecile Gutscher (Bloomberg)
http://www.bloomberg.com/news/2012-04-26/ontario-downgraded-to-aa2-on-growing-debt-burden-moody-s-says.html

Ontario’s credit rating was downgraded by Moody’s Investors Service as stalling economic growth puts its debt-reduction targets out of reach.

The rating was reduced to Aa2 from Aa1 and the outlook revised to stable from negative.

The downgrade brings Moody’s assessment closer to Standard & Poor’s, which previously rated Ontario two steps lower.

“There are significant risks surrounding the province’s ability to achieve their medium-term fiscal targets and stabilize and then reverse the recent accumulation in debt,” Moody’s analyst Jennifer Wong said in a report.

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