News Release Archive
FINANCE--FINANCIAL SITUATION GIVEN BETTER RATING ----------------------------------------------------------------- Nova Scotia's balanced budget policy is getting a favourable review. The international debt rating agency, Standard and Poor's announced late yesterday that it is upgrading its outlook on Nova Scotia's debt. The rating agency said the outlook is now stable instead of negative. A news release from Standard and Poor's said the change in outlook, "acknowledges the government's success in meeting its deficit goals in the past three years." Finance Minister Bill Gillis said the change means the province will have an easier time refinancing its outstanding net direct debt of $8.7 billion dollars. Dr. Gillis said the institutions that buy our bonds make investment decisions based upon ratings by agencies such as Standard and Poor's. He said our ability to borrow, at low interest rates, is improved by the change in rating outlook. Dr. Gillis said this change in outlook endorses the government's policy to balance the budget, and maintain the balance, as the correct one. He said over time it means we will be able to refinance our debt at a lower cost, leaving more money for the province to spend on programs, cut taxes or begin a program of real debt reduction. Standard and Poor's said the change in the rating reflects the province's diversified economy, which has improved in the past two years following a difficult period in the early 1990's. The rating agency said in fiscal 1996, the province's budgetary performance improved for the third year in a row, "the government has persevered with fiscal restraint, managing to hold operating spending growth to well below inflation in the past three fiscal years." -30- Contact: Bruce Cameron 902-424-8787 trp Oct. 01, 1996 - 10:50 a.m.