Wynne’s Ontario Transit Spending No Bogeyman for Bonds
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Investors are voting for infrastructure over austerity in Kathleen Wynne’s Ontario.
The province’s debt is outperforming the average of its peers as Premier Wynne pledges to spend C$130 billion ($108 billion) on roads, transit and hospitals over the next 10 years and Moody’s Investors Service has labeled it the world’s largest sub-sovereign debtor. The government is so confident of strong demand for the initial public offering of its Hydro One Inc. utility it plans to pay investment banks a quarter of the standard fees for the sale.