TORONTO – Bond rating agency Moody’s has downgraded the credit ratings of seven public organizations in Ontario days after lowering the province’s credit rating.
Moody’s says the downgrade affects three hospitals, one public university and three other government bodies, but says it has also changed their outlooks to stable from negative.
READ MORE: Moody’s downgrades Ontario’s credit rating
The Hospital for Sick Children, the Sinai Health System, Trillium Health Partners, and Ryerson University are amongst those impacted.
Moody’s announced last week that it was downgrading the province’s credit rating from Aa2 to Aa3, citing Ontario’s $14.5-billion deficit in 2018-2019 and projections that it will continue to post deficits in the coming years.
The agency says the combination of increased debt and slow revenue growth will result in a faster than previously anticipated increase of the province’s debt burden.
Moody’s also says that actions taken by the current Progressive Conservative government to reduce revenue levels will add to the budgetary pressures.