The Ontario government’s plan to balance the books is reflected in stable and improved rating agency outlooks, two financial ministers say.

Fitch Ratings upgraded the province’s fiscal outlook to stable from negative, and affirmed a double A minus credit rating, while DBRS said the change in government in Ontario is positive from a credit perspective with a “genuine and credible” commitment to gradually reduce debt.

“That matters because a downgrade typically leads to an increase in the cost of borrowing,” Finance Minister Vic Fedeli said. “This reduces the amount of money we have to invest in what matters most — critical services like health care and education.”

However, Premier Doug Ford government kicked off the week backtracking on retroactive downloading to municipalities, and remains under considerable pressure to undo cuts across the board.

Fedeli said the government has given itself five years to eliminate the operating deficit with contingency funds and reserves to withstand in-year budget shocks.

Treasury Board President Peter Bethlenfalvy said the government’s partners, including school boards and municipalities, have agreed to work with the province to find efficiencies.

“That’s the way we’re going to balance the budget and we’re going to do it together,” Bethlenfalvy said.

Liberal Leader John Fraser said ratings can go up or down depending on various factors, including the economy.

“I think the things they should be more focused on are the things that Ontario families count on … are schools doing better, are we giving people the care that they need?” Fraser said. “The ratings are for lenders; they’re not the most important constituents in this place.”

aartuso@postmedia.com