Ontario, More Indebted Than California, Ignores S&P in Borrowing
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Ontario, the world’s most indebted sub-sovereign borrower, is ploughing ahead with Canada’s most ambitious infrastructure plan -- risking the censure of Standard & Poor’s and underperformance for its C$307 billion ($237 billion) of bonds.
The nation’s most-populous province is keeping a goal of spending C$130 billion over the next decade on work such as roads and mass transit in Toronto even after S&P dropped its credit grade this month to the lowest level ever. Yield spreads on some of the province’s debt reached the widest since January after the ratings move.