Why credit ratings matter

Anyone who’s been paying attention knew this was going to happen. It was only natural, following the June 12 Ontario election, for Moody’s to shift the province’s fiscal outlook from “stable” to “negative.”

Why did this happen? As Moody’s Wednesday release noted: “After several years of weak to moderate economic growth, and higher than previously anticipated deficits projected for the next two years, the province is facing a greater challenge to return to balanced outcomes than previously anticipated.”

Those of us who were paying attention and sounding alarms can claim, “I told you so.” But many simply weren’t.