Government to do 'everything' to improve negative economic outlook: Cathy Bennett

With Newfoundland and Labrador's economic outlook downgraded for the third time in less than two weeks, Finance Minister Cathy Bennett says government is working to fix the province's money problems.

• Economic outlook for N.L. downgraded from stable to negative in credit report
• Fiscal crisis 'unprecedented,' Dwight Ball tells national audience

Standard & Poor's Ratings Services announced Friday it has changed the province's credit rating from A+ to A with a negative outlook.

Moody's maintained the province's credit rating but revised the outlook from stable to negative on Jan. 25, while Dominion Bond Rating Service (DBRS) also held the province's credit rating and downgraded the economic outlook from stable to negative on Jan. 21.  

We intend to do everything we can to maintain our credit rating- Finance Minister Cathy Bennett

"While it's certainly disappointing, we intend to do everything we can to maintain our credit rating." said Bennett.

She said the rating changes have a limited impact at this stage, but it is important to protect the ratings to keep the cost of borrowing from becoming too high.

"All three of the rating agencies I've spoke to personally. My sense is that they are eagerly looking forward to budget 2016," she said.

That's where government will announce the first in a series of steps it will take to control the deficit.

Bennett said the government will consider all options, including a HST increase, but it isn't rushing to make any changes. She said government wants to make solid decisions and include people in the process.

"To do knee jerk things now without understanding the implications that they have on social or economic policy would be irresponsible," she said. 

Bennett also placed some of the blame for the province's economic situation on the previous government. 

"Government was running a deficit when oil was trading at $100 a barrel. It didn't take several months to get into this situation. This situation is something that the moderating agencies have been sending warnings to former administrations about," she said.

"It's our government that's looking forward to finding the solutions and implementing the action plans to correct it."

Finance minister 'didn't get it'

In a statement Monday, Opposition Finance Critic Keith Hutchings said the downgraded fiscal outlook is a result of poor management and inaction on the part of the Liberal government.

Hutchings said that on Nov. 19, before the provincial election, DBRS maintained confidence in Newfoundland and Labrador's fiscal outlook. 

"They gave our administration a passing grade in November because we had presented a fiscal recovery plan," he said. 

"It was only after the November election, when the new government ditched our plan and said they wouldn't be ready with a new one for more than a year, that the agencies lost faith in the Newfoundland and Labrador government."

Hutchings also said government isn't acting fast enough.

"Even after the latest downgrade, the finance minister still didn't get it, but repeated the message that they will not be ready with longer-time actions until budget 2017," he said.