Moody’s Investors Service has affirmed its ratings on the province of Quebec, pointing to its efforts to control its debt and plans to move toward fiscal balance.

The rating agency said today that it is affirming Quebec’s credit rating of Aa2, due to the government’s ability to minimize the impact of its ongoing deficits on the province’s debt. “Although Quebec has posted deficits since the global financial crisis began in 2008,” it says, “The province’s debt burden, expressed as net direct and indirect debt as a share of revenue, has shown little fluctuation.”

Moody’s also says that the newly elected Liberal government in Quebec has “quickly implemented a series of measures, including a 20% reduction in the rates of business tax credits… to reinforce its commitment to achieving its budget targets.”

Planned limits on spending however, face execution risk, the rating agency says. “The province will need to demonstrate that they can execute their plan and achieve the planned fiscal positions in the near-term, ensuring their elevated debt burden is reduced,” said Michael Yake, Moody’s vice president and lead analyst for the province.

Moody’s also said that Quebec’s credit rating reflects the province’s large and diverse economy which supports a broad and productive tax base. And it notes that Quebec’s unfunded pension liabilities, when measured as a share of revenue, have also begun to decrease in recent years.