The DBRS Report had placed the Minister in a jovial mood. Likely, he was not surprised about our credit rating being maintained. What had made him so pleased? The Report contained a few nuggets about Muskrat Falls he wanted to share.DBRS is an important and objective international financial house engaged in the business of rating the bonds of governments and corporations.
Banks and their clients use this information to assess creditworthiness; investors parse every phrase used by such firms; their words cause interest rates to rise and fall. For governments and for large corporations, a change of credit status may represent millions of dollars of cost, or of savings.It is important to note that any downgrade is seldom made in the absence of prior expressions of guidance, subtle hints or outright warnings.
Institutions like DBRS are, therefore, important. No one knows that better than a Minister of Finance.