Moody’s maintains Prince Edward Island’s bond rating
Moody’s has confirmed Prince Edward Island’s provincial credit rating of Aa2, with a stable outlook.
“We are pleased that we have maintained our bond rating during these challenging economic times when other jurisdictions have had their ratings downgraded,” Finance Minister Allen Roach said. “I want to thank our provincial public service for making this achievement possible by working to control government expenses and managing the taxpayers’ dollars wisely.”
A stable credit rating signals to potential investors that Prince Edward Island is a wise choice for their money. It also enables the province to borrow when needed.
The province’s Aa2 (stable) rating reflects “a high degree of fiscal flexibility with revenues supported by sizable federal transfers and strong debt management practices that has ensured debt servicing remains manageable,” according to Moody’s. While acknowledging that the province has carried budget deficits for the last several years, the report states that “recent deficits have been modest, with financing requirements having little impact on the province’s debt levels.”
The worldwide scale for rating long-term bonds ranges from Aaa to C. Only bonds rated Aaa or Aa1 are valued higher than Prince Edward Island’s Aa2 classification.
Prince Edward Island receives bond ratings from three agencies; reports from the remaining two (DBRS and Standard & Poors) are expected in the coming weeks.
More information is available at Moody's.
Department of Finance