Bond ratings signal confidence in stability of minority government
The strong economic performance and debt management practices of Islanders and the provincial government are reflected in recent bond ratings.
For the first time since 2000, DBRS has upgraded the province’s bond rating from A(low) to A. As well, Moody’s maintained the province’s bond rating of Aa2.
“Our first budget was responsive yet responsible. It showed that government was listening to the needs of Islanders and considering those priorities as part of thoughtful fiscal planning,” said Minister of Finance Darlene Compton. “These bond ratings show that Prince Edward Island is on solid fiscal footing and that our efforts to manage our finances sustainably are working.”
Interest payments on provincial debt are the fifth highest budgetary expenditure. A higher bond rating means lower interest rates on government’s debt and, it means that more taxpayer dollars can go towards programs and services important to Islanders.
Moody’s noted the province’s rating was due to sound fiscal performance highlighted by a trend of positive operating budgets. DBRS also noted that the minority government is committed to maintaining balanced budgets and further reducing the debt-to-GDP ratio and is implementing pro-growth economic policies.
“The Island economy is performing well in large part due to the efforts of hardworking Islanders,” said Compton. “As a government, we need to keep this momentum going while investing in key areas important to Islanders so that we can create a province where everyone has the ability to succeed.”