October 23, 2008
For immediate release
Standard & Poor's Affirms Island's "A" Rating
“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.”