S&P downgrades Manitoba

S&P said it lowered its long-term issuer credit and senior unsecured debt ratings on the Province of Manitoba to A+ from AA-. The outlook is stable.

At the same time, S&P also lowered its short-term rating on the province and Manitoba Hydro-Electric Board's (MHEB) US$500 million commercial paper program, which is unconditionally guaranteed by the province, to A-1 from A-1+.

“The stable outlook reflects our expectations that, in the next two years, the government will implement the medium-term measures introduced in its 2018 budget, putting it on a gradual path to fiscal sustainability. In addition, we expect that Manitoba will continue its large investments in strategic infrastructure but that the financing of these projects will not result in liquidity dropping below 40% of the next 12 months' debt service,” S&P said in a news release.

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