Morningstar DBRS has confirmed the provincial government’s credit rating at A with a stable trend.
The credit-rating agency says while the province chose to delay its return to balance by a year to maintain current affordability measures, the budget is “void of any material tax measures and pre-election handouts.”
(VOCM News)
The province is forecasting a deficit for 2025-26 of $372 million. However, Morningstar DBRS says that’s still a favourable outlook compared with most provinces.
Despite the challenging macroeconomic environment, the credit rating agency says NL is expected to be among the leaders with a real GDP growth of 4.4 per cent in 2025 before moderating to 1.6 per cent in 2026.
Morningstar, DBRS says it does not anticipate a credit rating upgrade in the near term, but will consider a downgrade if the province shows sustained deterioration in fiscal performance and debt.
