The ratings on the Province of Ontario reflect Standard&Poor's Ratings Services' opinion of the following credit strengths: Ontario's economy rebounded in 2010, after bottoming out in mid-2009. The government estimates that real GDP rebounded by 2.8% in 2010 after declining by 3.6% in 2009. According to the government's estimates, real GDP should continue to advance by 2.4% in 2011. The recession's impact was felt chiefly in the construction and manufacturing sectors (vehicle assembly and part production). Nevertheless, we believe Ontario has a large and well-diversified economy with depth and scale in many sectors, and we believe that the provincial economy has a number of key strengths, including a large, well-educated workforce; and proximity to important northeastern U.S. markets.
