DBRS has upgraded P.E.I.’s bond rating from an A (low) to an A grade for the first time since 2000.
Moody’s, meanwhile, has maintained its bond rating of Aa2 for the province.
Interest payments on provincial debt are the province’s fifth-highest budgetary expenditure. A higher bond rating means lower interest rates on government’s debt and that more taxpayer dollars can go towards programs and services.
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 government is committed to maintaining balanced budgets and further reducing the debt-to-GDP ratio and is implementing pro-growth economic policies.
Finance Minister Darlene Compton said in a news release that the ratings are a reflection of the Island’s strong economic performances and debt-management practices.
“These bond ratings show that Prince Edward Island is on solid fiscal footing and that our efforts to manage our finances sustainably are working.
“The Island economy is performing well in large part due to the efforts of hardworking Islanders. 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.”