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By Dave Liedtka

Ontario’s rating outlook was cut to negative from stable by Moody’s Investors Service on concern Canada’s most populous province faces a higher risk in meeting fiscal targets given a recent slowdown in economic growth.

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The province’s $190-billion of debt maintains its Aa1 rating, Moody’s said in a statement today.

The province in November revised its forecasts down for provincial growth in 2011 and 2012 to 1.8% and 1.8%, from 2.4% and 2.7%, Moody’s said. The provincial economy is affected by the moderation in U.S. growth, given its higher export share relative to other Canadian provinces and the estimated 80% of international exports destined for the nation’s largest trading partner.

“The negative outlook on the province reflects the softening economic outlook, Ontario’s growing debt burden, and the extended timeframe to achieving a balanced budget,” Moody’s Assistant Vice President Jennifer Wong, lead analyst for the Province of Ontario, said in the statement.

Bloomberg News