S&P threatens credit downgrade for B.C.

MLA’S Shirley Bond and Stephanie Cadieux, BC Liberal Finance Co-critics, are sounding the alarm after ratings agency Standard and Poor’s (S&P) threatened to downgrade BC’s AAA credit rating amid concerns about rising debt to revenue rates.

“After just two years in government, NDP policies are killing our economy. The government continues to ignore significant economic risks for our province,” said Bond on Tuesday. “This should be a wake up call to [Premier] John Horgan and the NDP that relying on new and increased taxes isn’t good enough and that having a credible economic strategy is critical.”

According to S&P, British Columbia is not prepared to withstand any economic shocks or downturns should debt levels continue to rise. The NDP’s fiscal plan is reversing a steady trend of declining debt that started under strong BC Liberal management in 2014.

“The NDP have spent recklessly for two years, and hard-working British Columbians are on the hook for the bill,” added Cadieux. “Unless John Horgan can come up with a plan to grow the economy and reduce debt then British Columbians better hold on to their wallets.”

S&P’s August report, finally released by the NDP on Tuesday, states that “if fiscal slippage or other policy decisions cause this ratio to rise notably above current expected levels, it could begin to erode B.C.’s resiliency to the next economic downturn. We could lower the rating by one notch as a result.”

Stephanie Cadieux