Moody's Downgrades New Brunswick Rating to Aa3

Fredericton, New Brunswick, April 10, 2026 - Global credit rating agency Moody's Investors Service has downgraded the outlook for New Brunswick's finances from stable to negative, citing concerns over the province's fiscal path and revenue challenges.

The agency lowered New Brunswick's baseline credit assessment from Aa2 to Aa3, a move that signals increased risks to the province's ability to manage its debts and sustain public services. Moody's attributed the downgrade to expected weak revenue growth, influenced by external factors including U.S. tariffs on Canadian exports and reduced population increases linked to stricter federal immigration policies. The report also highlighted potential vulnerabilities if the province fails to curb spending as outlined in its fiscal plans, which could further strain its budget.

New Brunswick's Liberal government has projected a record $1.4 billion deficit for the 2026 fiscal year, with deficits anticipated to continue for at least two more years. These projections come amid broader economic pressures facing the Atlantic province, where slower population growth limits tax revenues and economic expansion. Officials noted that the tariffs,...