Solid operating results in fiscals 2006 and 2007 Large and well-diversified economy with robust performances in the long term Declining tax-supported and direct debt burden Substantial transfer payments from the Canadian federal system Adequate liquidity, which superior access to capital markets supports Possibility that unexpected revenue weakness could lead to a return to operating deficits High debt burden relative to those of peers The ratings on the Province of Ontario reflect the following factors: Ontario produced its second consecutive solid operating surplus in fiscal 2007 (year ended March 31) of 5.6% of operating revenues, which followed an equally solid 5.4% operating surplus in fiscal 2006. The 2007 surplus exceeded the previous year's budget forecast (3.9%) thanks to stronger-than-expected revenue growth.
