News Release

FREDERICTON (GNB) – The provincial government has maintained its credit ratings and outlooks with two major bond-rating agencies.

A credit opinion by Moody’s Investors Service has maintained the debt rating at Aa2 with a stable outlook. DBRS has confirmed its rating of A-high with a stable outlook.

Finance Minister Roger Melanson welcomed these opinions, which follow the 2016-17 provincial budget.

“Positive ratings send a strong message about the balanced approach our government is taking to create jobs and address our fiscal challenges as we work to make life better for New Brunswick families,” said Melanson. “These confirmations of our rating in challenging economic times show the strength and credibility of the fiscal decisions we have made to get our province back on a stronger financial footing.”

Despite challenges like weak revenue growth stemming from a difficult economic environment, Moody’s identified a number of credit strengths, including the provincial government’s plan to balance revenues and expenditures and return to balanced budgets.

DBRS noted that the 2016-17 budget included a multi-year fiscal plan aimed at addressing the structural deficit.

“DBRS believes our fiscal recovery plan is achievable,” said Melanson. “Our government has demonstrated its ability to control expenditure growth and projected deficits, while also offering detailed plans to achieve savings and grow revenues.”

Melanson praised the Strategic Program Review, which will yield $296 million in expenditure reductions and $293 million in new revenue measures once they are fully realized.

“We are acting prudently and holding our own as a province despite the economic climate facing governments across Canada and around the world,” said Melanson.