DBRS confirms province’s bond rating

 DBRS is the second agency in two weeks to confirm Prince Edward Island’s provincial credit rating as unchanged and stable.

“The fact that we have maintained our bond rating helps signal to potential investors that Prince Edward Island is a wise choice for their money,” Finance Minister Allen Roach said. “Even as other provinces have had their ratings downgraded, we’re seeing positive results from our ongoing commitment to control government expenses and manage taxpayer dollars wisely.”

DBRS rated Prince Edward Island’s long-term debt at A (low) and short-term debt at R-1 (low), with all trends stable. The agency noted that Prince Edward Island benefits from a stable economy, a debt burden that has begun to decline, and an improving outlook for operating results.

“The gradual improvement in operating results has been positive; however, the province will face significant challenges over the medium term in maintaining a balanced operating result,” according to the DBRS report. “The population continues to age, which is putting pressure on government services while simultaneously reducing the size of the working-age population.

“Notwithstanding these challenges, the political tone seems to be shifting under the current government with an increasing emphasis is being put on improving the province’s long-term economic and fiscal prospects,” the report stated.

Last week, Moody’s confirmed its rating for the province of Aa2 with stable outlook. Standard & Poors’ rating opinion is expected in the coming weeks.
 
More information visis DBRS.

Media contact:
Brad Chatfield
Department of Finance
902-368-5501
bpchatfield@gov.pe.ca