The ratings on the Province of Ontario reflect: As-expected budgetary performances in the past three fiscal years, period ended March 31, 2006. In fiscal 2006, the province continued to make incremental progress at reducing its overall deficit and reverted to a small operating surplus. In Standard&Poor's Ratings Services' adjusted terms, the province recorded a small surplus of 2.9% of revenues in fiscal 2006, which represented a significant turnaround from the deficit of 7% of revenues recorded in the first year of the current government's mandate. The province's overall deficit was also reduced somewhat to 4.0% of revenues (Standard&Poor's adjusted and including capital spending), but remained relatively high compared with domestic peers'. The province is expecting a
