Call it a double-credit take-down.
Not one, but two international credit-rating agencies, first Standard and PoorB次元官网网址檚, then MoodyB次元官网网址檚, downgraded B.C.B次元官网网址檚 credit worthiness within hours on Tuesday (April 9).
S&P lowered B.C.B次元官网网址檚 credit rating to AA- from AA, while MoodyB次元官网网址檚 lowered the provinceB次元官网网址檚 outlook to negative from stable, while confirming B.C.B次元官网网址檚 AAA rating.
B次元官网网址淲e believe that the provinceB次元官网网址檚 commitment to fiscal discipline and stability has wavered in recent years as B.C. has materially increased its spending for both operations and capital investment to unparalleled levels, while economic growth is slowing,B次元官网网址� S&P said in its analysis.
MoodyB次元官网网址檚 struck a similar note.
B次元官网网址淭he negative outlook for British Columbia reflects the risks to the provinceB次元官网网址檚 ability to slow a significant projected increase in debt amid rising spending commitments and its lack of commitment to return to fiscal balance within a specified time period,B次元官网网址� it reads.
In other words, neither agency sees B.C. curbing spending any time soon, with each hinting at future rating downgrades.
These downgrades come after the B.C. NDP tabled a budget with a record-setting deficit of almost $8 billion.
RELATED:
For B.C. UnitedB次元官网网址檚 Peter Milobar, these assessments are indictments of NDP fiscal management with direct consequences for British Columbians.
B次元官网网址淲hat it means is that we are going to be all asked to pay more tax dollars for the same, if not less services by the British Columbia government and thatB次元官网网址檚 really at the core of the problem,B次元官网网址� he said.
RELATED:
Milobar said these changes will directly hurt residents already chafing under high personal-debt levels. More and more of their tax dollars will go toward servicing debt, leaving less money for services, he added.
B次元官网网址淚f health care was actually getting better, if crime and safety on our streets was getting better, I think people would understand the spending,B次元官网网址� he said. B次元官网网址淏ut when all of those areas are actually getting worse, it really does make you wonder what exactly it would take for this government to get things under control and not see our credit rating downgraded.B次元官网网址�
Finance Minister Katrine Conroy, however, said B.C. continues to be a B次元官网网址渟trong economic leaderB次元官网网址� with one of the lowest GDP-to-debt ratios, adding that Fitch Ratings recently re-affirmed B.C.B次元官网网址檚 AA+ rating..
It is also the only province with a AAA rating from any of the major agencies, and both S&P and MoodyB次元官网网址檚 point to B.C.B次元官网网址檚 strong economic fundamentals.
B次元官网网址淲e knew that there potentially could be a downgrading because of the slower economy, the high interest rates, the slower global economy,B次元官网网址� she said. B次元官网网址淪o we knew that might happen.B次元官网网址�
Conroy said the NDP inherited what she called a B次元官网网址渄eficit in infrastructureB次元官网网址� in pointing to public demands for more hospitals and schools. B次元官网网址淪o those are things that we had to do and it was the right thing to do for the people of the province,B次元官网网址� she said.
She also dismissed suggestions that the lower credit rating could impact B.C.B次元官网网址檚 ability to attract investment.
B次元官网网址淏usinesses continue to invest in B.C. and they like what we are doing when it comes to supporting people and supporting infrastructure,B次元官网网址� she said.
Conroy said British Columbians expect government to support them during tough times.
B次元官网网址淲hile some want to make cuts to the hospitals and schools people rely on, we know thatB次元官网网址檚 the wrong decision and would make life harder for people when they need support the most. By providing key services and infrastructure we are building a stronger B.C.B次元官网网址�
