Moody's Investment Services affirms Aa2 credit rating for Quebec

Moody's Investors Service has decided to maintain Quebec's Aa2 credit rating, saying the province has a stable outlook.

The U.S. agency says the rating reflects Quebec's ability to minimize the impact of recent and ongoing deficits, which have accumulated since 2008, on the province's large debt burden.

Moody's noted that the Liberal government elected in April showed it is serious about achieving its budget targets by moving quickly to implement a series of measures, including a 20 per cent reduction in business tax credits.

The New York-based service says, however, that spending growth targets are ``ambitious'' and include some risks in execution.

The projections are for 1.8 per cent growth in 2014-15 and 0.7 per cent in 2015-16.

Michael Yake, Moody's vice-president and lead analyst for Quebec, says the province has a challenge ahead.

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