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Province Gets Another Positive Outlook From Major Bondrating Agency

first_imgAnother major bond-rating agency has given Nova Scotia a positive outlook, helping the province to lower the cost of borrowing money. Moody’s Investors Service announced today, Aug. 19, that it had changed the outlook for its A2 debt rating of the province to positive from stable. In June, the Dominion Bond Rating Service also changed the trend on Nova Scotia’s long-term debt to positive from stable. “This change from Moody’s takes into account our government’s decision to direct to our debt the $830 million received in offshore accord monies from the federal government,” said Finance Minister Peter Christie. “The positive outlook also recognizes our commitment to produce surpluses in each year until 2011-12.” Moody’s expects the immediate reduction in debt in 2005-06 to be maintained or further reduced for the next several years, while economic growth and budget revenue increases should continue to improve Nova Scotia’s debt ratios. Moody’s also recognizes that the province has recorded budgetary surpluses each year since 2000-01, which the bond rating agency indicates is “markedly superior performance to that of several years earlier.” The rating agency also cites steady economic growth in Nova Scotia, and indicates that future rating decisions will depend on the province’s ability to adhere to its fiscal plan.last_img read more

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