The ratings on Ontario reflect: The better-than-expected budgetary performance in fiscals 2005 and 2006. The province's overall deficit (Standard&Poor's Ratings Services adjusted and including capital spending) declined to 5.2% of revenues in fiscal year 2005 from 9.2% of revenues in fiscal 2004. This was materially lower than that expected in last year's budget. The province is expecting a further narrowing in the overall budgetary deficit to 3.9% of revenues in fiscal 2006 and expects to balance its budget by fiscal year 2009. The province's large and well diversified economy, which has remained resilient in the face of the sharp appreciation of the Canadian dollar in the past year and the sustained strength in oil prices. The increased financial
