Fitch Ratings agency upgrades rating outlook for Ontario from negative to stable

TORONTO — Fitch Ratings agency has upgraded its rating outlook for Ontario from negative to stable and is maintaining its credit rating at AA-.

Fitch says that is based on the expectation that Ontario will balance its budget in 2023-24, as the Progressive Conservatives promised in their recent budget.

The agency says it will be "challenging" for the government to keep its plan of limiting program spending growth to one per cent until it achieves balance.

It says despite that challenge, Ontario has a strong ability to absorb a moderate economic and revenue shock.

Finance Minister Vic Fedeli says that shows his fiscal plan is working.

DBRS has rated the province at AA (low) and Moody's in December downgraded Ontario to an Aa3 credit rating.

The Canadian Press