This presentation will look at all aspects of government debt including net debt, interest cost and bond rating. Government debt is a key are for people to understand as it reflect decisions by government in terms of paying down the debt.

1. BY: PAUL YOUNG CPA, CGA
DATE: MARCH 18, 2017
Government Debt – Canada –
Analysis – March 2017

2. • SME – Financial Performance Management (TM1, Cognos Controller and Cognos Disclosure
Management, OpenPages, Algorithmics, Cognos Integrated Server, Cognos Command Center and
Datawatch)
• Industry Experience
• 15+ years in Corporate Reporting, Budget & Forecasting, Costing, Business Process
Management, Internal Audit and Controls, Risk Management, Financial Analysis, Costing
• 11+ years in financial solutions (FOPM, FPM, Risk, Office of the Finance, Risk Management)
• 8+ years teaching Advance Finance, Advance Accounting, Public Finance and Advance
Management Information Systems
• Blogger in areas like Finance Analysis, Government policies, market segment
Paul Young - Bio

3.  What are bond agencies?
 Canada Federal and Provincial Bond Rating
 Manitoba/Credit Rating
 Alberta/Credit Rating
 Ontario/Credit Rating
 Government Net Debt
 Government Interest Cost
Agenda

4. - Source - http://www.investinginbonds.com/learnmore.asp?catid=9&subcatid=94
What are bond agencies
• Agency bonds are issued by two types of entities—1) Government Sponsored Enterprises (GSEs),
usually federally-chartered but privately-owned corporations; and 2) Federal Government agencies
which may issue or guarantee these bonds—to finance activities related to public purposes, such as
increasing home ownership or providing agricultural assistance. Agency bonds are issued in a variety
of structures, coupon rates and maturities.

5.  Rate government debt
 Downgrades can forced up interest costs due to higher return required on bonds
 Debt ceiling can be established
 Many finance minister have said they do not sleep at night due threat of bond downgrade
Bond Agencies

6.  http://www.financialpost.com/markets/data/bonds-canadian.html#provincial
Bond/Value

7.  http://www.cbc.ca/news/canada/manitoba/manitoba-moodys-credit-agency-rating-
1.4018001
MB / Credit Rating

8.  http://business.financialpost.com/news/economy/moodys-dbrs-cast-worried-eye-on-albertas-debt-and-
recovery-hopes-based-on-oil
Alberta / Credit Rating

9.  http://www.cbc.ca/news/canada/toronto/moodys-ontario-credit-rating-stable-1.3554371
Ontario / Credit Rating

10.  RBC – March 16, 2017
Government – Net Debt

11. Government Interest cost
https://www.fraserinstitute.org/sites/default/files/cost-of-
government-debt-in-canada-2016.pdf
Comment:
• Alberta interest is not $800M/year
• Provinces like Ontario/PQ interest
cost is 3rd largest expense
• Government debt has paid back
• Running Surpluses
• Spending cuts
• Selling off assets

12. Global TV – June 28, 2016
CBC – April 22, 2012