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Moody’s Ontario credit rating downgrade hits health, education sectors

This Aug. 13, 2010 photo shows a sign for Moody's Corp. in New York.
This Aug. 13, 2010 photo shows a sign for Moody's Corp. in New York. THE CANADIAN PRESS/AP, Mark Lennihan

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.

READ MORE: Ontario government financial outlook changed to from stable to negative: Moody’s

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.

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Moody’s also says that actions taken by the current Progressive Conservative government to reduce revenue levels will add to the budgetary pressures.

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