Manitoba government's credit outlook downgraded
Manitoba government's credit outlook goes from stable to negative, credit rating remains same
A credit-rating agency has issued a warning of sorts to the Manitoba government.
Moody's Investor Services has changed its outlook for the province's finances from stable to negative.
The agency says if the province continues to run up deficits it will be challenged to meet its target to balance the budget two years from now.
Moody's has maintained the province's credit rating at A-a-1, but cautions there will be downward pressure on the figure if the debt continues to climb.
Finance Minister Jennifer Howard says the change today will mean a slight increase in the interest rate the government pays, but she says it will be manageable.
Howard also says the province is committed to balancing the budget by 2016, and has no plans for any major tax hikes.
There is a caveat, however.
Howard says the government will not turn its back on victims of floods or other disasters in order to meet its targets.