Moody’s believes there is too much risk around government’s rate mitigation plan at this point to align with the province’s previous credit rating due to unproven and untested plans.

Vice-President and Senior Credit Officer at Moody’s Investor Service, Michael Yake, says the province has put together a ten-point plan outlining where savings and other measures can be found to help decrease the potential for hydro rate increases.

He says they haven’t seen any of these ten points put to use yet, so at this point it is simply just a plan.

Yake says if one, two or three of those points were not to succeed, that would mean the plan then needs to find other means to achieve rate mitigation. The risk now aligns with the new a1-stable rating.