Economic outlook for N.L. downgraded from stable to negative in credit report

The credit rating agency Dominion Bond Rating Service DBRS has confirmed that Newfoundland and Labrador's credit rating remains at 'A,' although the agency on Thursday downgraded the province's economic outlook from stable to negative.

In a statement issued on Thursday, the provincial government said that it is "reiterating its commitment to work to protect the province's credit ratings."

A reduction in the province's credit rating would make it more costly for government to borrow money.

Earlier this month, Premier Dwight Ball launched what it called the Government Renewal Initiative to identify actions to eliminate the province's deficit and put in place a sustainable budgetary framework. 

Discussions with DBRS indicate the initiative is being well-received, the government said. 

"Our province is facing a difficult fiscal reality, one that was not created overnight and will require focus, collaboration, long-term planning and a commitment to sustainability," Ball said in a statement.

"Our government is working hard to ensure we rise to this challenge and face it head on. Protecting our credit ratings is paramount in this process."

Residents of the province can participate by email, online, telephone, or in person at Government Renewal Initiative engagement events.