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Moody’s has changed its outlook for New Brunswick from stable to negative
Moody’s said weak revenue growth and a projected $1.4 billion deficit could further strain the province’s finances.
- Moody's Ratings downgraded New Brunswick's baseline credit assessment from AA2 to AA3, shifting the province's fiscal outlook from stable to negative.
- The Liberal government's 2026 budget forecasts a historic $1.4 billion deficit with two additional years of shortfalls projected, prompting Moody's to warn that uncontrolled spending will further pressure the province's fiscal position.
- Revenue growth is expected to remain weak due to U.S. tariffs and lower population growth tied to stringent federal immigration policies, limiting the province's ability to generate funds.
- Finance Minister René Legacy said the province welcomes Moody's scrutiny and is moving forward with a plan to grow the economy and manage expenses.
- Moody's previously downgraded British Columbia to AA2 in March amid similar deficit budgets, providing regional context for the current assessment of New Brunswick's fiscal challenges.
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Coverage Details
Total News Sources9
Leaning Left5Leaning Right1Center2Last UpdatedBias Distribution63% Left
Bias Distribution
- 63% of the sources lean Left
63% Left
L 63%
C 25%
12%
Factuality
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