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October 23, 2008
For immediate release

Standard & Poor's Affirms Island's "A" Rating

Provincial Treasury

Standard and Poor’s Rating Services today affirmed its ratings, including its 'A' long-term issuer credit rating, on the Province. The outlook remains positive.

“This is our first rating by Standard and Poor’s since the credit crisis started south of the border, so we’re very pleased it’s such a positive one,” said Provincial Treasurer Wes Sheridan. “The long-term credit rating of 'A' is a signal to investors, that the Island’s capacity to meet its financial commitments is strong.”

Standard and Poor’s based its decision on a number of factors, including the solid growth in PEI’s economy, with robust output and employment growth in recent years. From 2002-2006, its real gross domestic product (GDP) grew 2.8 percent per year on average. Real GDP grew another 2 percent in 2007. The province is forecasting real GDP to rise 2.2 percent in 2008. The province’s net tax-supported debt was also considered in the rating. That is equated to an estimated 33 percent of GDP at fiscal year-end 2008 (March 31), down from 35 percent the previous fiscal year. PEI continues to have solid access to the capital markets.

“Last year, we had the highest-ever numbers of Islanders out in the workforce,” said Minister Sheridan. “Our Government is building PEI’s economy and it’s nice to see that recognized through this rating.”

Media Contact: Jennifer MacDonald-Donovan
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