Description: Moody’s downgraded Ottawa’s outlook to Aa2 with a stable outlook from Aa1 with a negative outlook. This came one day after Standard & Poor’s reaffirmed Ontario’s current AA- rating, but put the province on “negative watch.”    

Source: Business News Network

Date: April 27, 2012

Link: http://www.bnn.ca/News/2012/4/27/Bond-markets-take-Ontario-to-task.aspx

Questions for Discussion:

1. Do you agree with the rating agency’s decision to downgrade Ontario’s outlook?
2. Will people in Ontario be favorable towards austerity measures proposed by the Ontario government?
3. Is Ontario in danger of joining the ranks of European governments, such as Greece, Spain and Italy?