It's the third rating drop since 2021, when B.C. lost
"The Province of
It said that in the next two years there was at least a one-in-three chance the current fiscal course would result in rising debt levels and very low internal liquidity, "weaker than those of similarly rated peers."
That would mean another ratings cut, it said.
Another global ratings agency, Moody’s Investors Service, separately revised its outlook for B.C. to negative on Tuesday.
But
B.C. Finance Minister
Conroy said that the capital investments noted by S&P were needed because the NDP government "inherited a deficit of infrastructure" from their BC Liberal predecessors, now known as BC United.
"We have had to build hospitals. We have had to build schools. We have had to build roads. We have had to make housing a priority because of what we inherited," Conroy said in the B.C. legislature on Tuesday.
S&P said a reversal of the province's "fiscal trajectory" is needed along with stronger economic growth for the outlook to be revised to stable.
It said the province's commitment to fiscal discipline and stability have "wavered" recently as B.C. increases spending on operations and capital investment to what S&P calls "unparalleled levels" amid slowing growth.
"Considering B.C.'s focus on taxpayer affordability and on capital investment when economic growth is weakening, we expect that the province's fiscal performance will materially deteriorate in the next two years," S&P said.
Opposition BC United finance spokesman
“Each downgrade under the NDP brings higher taxes and tighter budgets for British Columbians. The result is higher costs for loans, as David Eby’s policies drain our wallets," he said, calling the credit assessments "a wake-up call."
BC Conservative member
"The largest credit institutions in the world have taken a look into this premier's mismanagement of taxpayer dollars, and they think he cannot be trusted," Banman said. "
— By
This report by The Canadian Press was first published April, 9, 2024.
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