US EditionCredit Agency Downgrades Nova Scotia’s Finances, Citing More Spending and Debt
S&P Global lowered Nova Scotia's credit ratings due to a projected $1.3 billion deficit and increased borrowing driven by higher spending on health care, seniors, and capital projects.
- On February 2, 2026, S&P Global downgraded Nova Scotia's long-term ratings from AA- to A+ and cut the short-term rating to A-1, placing the outlook on negative.
- S&P cited a mounting deficit that grew to nearly $1.3 billion, which Premier Tim Houston recently said could top 1.4 billion, alongside higher health-care services and seniors spending, tariffs, and stalled population growth.
- Despite the downgrade, bond investors continue to show strong demand for short-term and 10-year Nova Scotia bonds, with S&P noting the rating remains strong but more susceptible, and highlighting suspended Chinese seafood tariffs.
- As officials prepare the 2026-27 budget, S&P Global warned deficits will be larger and last longer, pressuring borrowing and delaying the return to balance by fiscal 2029.
- Political leaders reacted, with Interim Liberal Leader Iain Rankin saying the report shows increased risk, opposition urging the PCs to curb overspending, and Finance Minister John Lohr unavailable Friday.
12 Articles
12 Articles
Credit agency downgrades Nova Scotia’s finances, citing more spending and debt
One of the biggest credit rating agencies in the world is downgrading its view of the Nova Scotia government’s finances, saying higher-than-budgeted spending on seniors and health care could make it harder to balance future budgets.
Prince George Citizen
Credit agency downgrades Nova Scotia's finances, citing more spending and debt
HALIFAX — One of the biggest credit rating agencies in the world is downgrading its view of the Nova Scotia government’s finances, saying higher-than-budgeted spending on seniors and health care could make it harder to balance future budgets.
The Agency expects the province's budgetary performance to be below its expectations, and doubts that fiscal balance will be possible in 2029.
One of the largest credit rating agencies in the world is lowering its note on Nova Scotia government finances, saying that spending above the budget estimates for seniors and health care could make it more difficult to balance future budgets.
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