April 10, 2017

Premier Duels With Me Over Credit Predictions

On the day before the budget, I predicted in a blog that the budget would result in a credit rating downgrade, and outlined the consequences.

On April 6, 2017 the Liberal government presented its annual budget. This budget left the structural spending problem largely intact, a fact not lost on Moody’s, which issued an early press release citing “Risks in Lengthy Recovery Plan.”

The Telegram ran a front page story after the recent budget bylined "Ball, Crosbie differ on whether province's credit rating will be downgraded". The Premier was quoted as saying: "My prediction is Ches is going to be wrong".

While we wait for credit rating agencies like Moody's to deliver their verdicts, media and analyst headlines have not been encouraging:

“No hope, debt looms large, budget pushes problems down the road”

“A stay-the-course-budget”

“Fails to continue the spending savvy budget from last year, the spending problems remain”.

For the sake of the province, I hope I am wrong. The rating agencies take some time to sift through the budget papers, but by the end of April we should know the verdict.

While we wait to find out whose prediction about credit rating downgrade is "correct", you can learn more about my political thoughts and opinions by subscribing to my campaign and revisiting my blog.