The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.
Andrea Mandel-Campbell is a former anchor at CTV’s Business News Network and author of Why Mexicans Don’t Drink Molson.
No one was really surprised when Ontario’s debt rating took another drubbing last week, adding Canada’s largest province to a long list of debt-swamped jurisdictions from Italy to Spain to be singled out by credit rating agencies for critical review.
Moody’s expressed displeasure with Ontario’s ballooning debt and dismal growth projections by lowering its outlook for the province’s debt rating to “negative.” It’s the latest in a cascade of downgrades beginning in 2009 after the province, having indulged in a massive uptick in government spending, was blindsided by the financial crisis.
Ontario’s Finance Minister Dwight Duncan promised to take the warning seriously – and the rest of Canada had better hope he means it. Ontario represents 40 per cent of the country’s GDP. As Janice MacKinnon, Saskatchewan’s former finance minister, recently pointed out, the rating agencies don’t look at Ontario in isolation, but at the country in its entirety. Ontario’s debt woes “hurt Canada as a whole,” she said.