Debt, deficits and the possibility of tough economic times ahead are all cause for concern when it comes to the province’s credit rating, says the Financial Accountability Officer of Ontario.

In a report released Tuesday, the FAO said that while Ontario “benefits from a strong, investment-grade credit rating” — one that currently remains unchanged — two of the four credit-rating agencies have “revised their rating outlook for Ontario’s debt from stable to negative, reflecting their assessment of the province’s increased credit risk.”

The FAO notes that the province “over the next three years ... will need to refinance $75.2 billion in maturing debt. New investments in capital assets along with any funding needed to finance budget deficits will further add to province’s borrowing requirements.

“A credit rating downgrade could increase the cost of this future borrowing, placing additional pressure on Ontario’s budget.”

The debt ratings by the agencies look at the province’s ability to “meet its debt-related financial obligations.”

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A spokesperson for Finance Minister Vic Fedeli said the Progressive Conservatives will be better financial stewards than the previous Liberal government that was defeated in the June election.

“The out-of-control spending of the previous Liberal government was simply unsustainable,” said Robert Gibson, Fedeli’s press secretary.

“Under the previous government Ontario suffered numerous credit downgrades over the past 15 years due to ballooning deficits and sky-rocketing debt. Our government is committed to setting us on a responsible fiscal path that will strengthen our credit standing.”

Ontario, with the country’s largest economy, currently also has largest debt at $350 billion, which will grow if governments continue to run big deficits.

All four credit agencies “have warned that Ontario’s rising debit could trigger a downgrade.”

In April, Moody’s Investors Service changed its predictions on Ontario’s ratings, from “stable” to “negative” after the then-Liberal government announced a pre-election budget with a $6.7-billion deficit.

Ontario kept its “Aa2 rating” with Moody’s, it was considered a sharp warning for the government.

“The outlook change to negative from stable on Ontario’s ratings reflects Moody’s expectations that spending pressure will challenge the province’s ability to sustain balanced fiscal results across multiple years, “ Moody’s said in the spring.

“Furthermore, Moody’s assumes that the financing requirements will be larger than previously assumed, leading to an upward trend in the debt burden and a faster rise in interest expense than previously anticipated.

In terms of credit ratings, Ontario is “middle of the pack” — the same as Quebec but lower than provinces such as Alberta and British Columbia.

The credit agencies say while Ontario has the country’s biggest economy and good trading relationships, they “also identified several challenges regarding Ontario’s credit rating, including the province’s high and rising debt burden and the decision in the 2018 Budget to return to large budget deficits going forward. The agencies also expressed concern over the significant risks facing the province’s economy.”

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While Premier Doug Ford’s election platform did not contain a thorough costing of all of his party’s promises, he has said that he will find 4 per cent efficiencies — or about $6 billion — within the government.

One Western University economist, however, who kept track of all three parties during the election campaign, had estimated a Ford government would run a deficit of $5.8 billion to $12.7 billion in 2019-20 based on their pledges.

The FAO report was authored by economists Nicholas Rhodes and David West.

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