Standard and Poors maintains Prince Edward Island’s bond rating

Standard and Poors has reaffirmed Prince Edward Island’s bond rating as stable, based on strong financial management and improving budgetary performance.

“The bond rating agencies have all recognized that we are making great strides in strengthening our financial position and improving our budgetary outlook,” Finance Minister Allen Roach said. “A stable rating gives investors and Islanders greater confidence in how our finances are being managed.”

Standard and Poors has confirmed its long-term credit rating as A and its short-term rating as A-1, with a stable outlook.

The report said the ratings reflect the agency’s opinion of the province’s economic performance and strong financial management.

“The stable outlook reflects our expectation that, in the next two years, Prince Edward Island’s financial results will improve such that it generates small operating surpluses,” according to the report. “Nevertheless, PEI faces an aging demographic profile and modest population growth that we believe create fiscal pressures, particularly on healthcare expenditures.”

Prince Edward Island receives bond ratings from three agencies. Over the past two months, Moody’s and DBRS also reaffirmed their existing ratings with a stable outlook.

Media contact:
Wayne MacKinnon
Department of Finance
(902) 314-3407

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95 Rochford Street
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Phone: (902) 368-4040
Fax: (902) 368-6575