The ratings on the Province of Ontario reflect: Better-than-expected budgetary performances in the past two fiscal years (ended March 31), which are expected to continue in fiscal 2008. In its most recent budget, the province recorded a somewhat larger-than-expected operating surplus of 6.4% of revenues in fiscal 2007 (Standard&Poor's Ratings Services adjusted), following an operating surplus of 5.7% in fiscal 2006. This improvement represents a dramatic reversal from the string of deficits that started in fiscal 2003 and peaked at 7% of revenues in fiscal 2004. In addition, the province is on track to post an operating surplus of 5.5% of revenues in fiscal 2008. The province's overall deficit was also reduced somewhat to 0.5% of revenues (Standard
