Moody’s reaf­firms Is­land’s bond rat­ing as sta­ble

Agency cites bal­anced bud­get, re­duced debt lev­els in prov­ince

The Guardian (Charlottetown) - - THE ISLAND -

“These bond rat­ings show that Prince Ed­ward Is­land is on a solid fis­cal foot­ing and that our ef­forts to man­age its fi­nances re­spon­si­bly – to­gether with Is­landers – are pay­ing off.’’ Fi­nance Min­is­ter Allen Roach

Moody’s has joined with bond rat­ing agency DBRS to reaf­firm Prince Ed­ward Is­land’s bond rat­ing as sta­ble, re­flect­ing strong debt man­age­ment prac­tices.

In its re­port re­leased this week, Moody’s states that the prov­ince’s bal­anced 2017-18 op­er­at­ing bud­get and good fis­cal per­for­mance are help­ing to re­duce its debt lev­els. Fur­ther, Moody’s said it could up­grade the prov­ince’s rat­ings if it con­tin­ues to re­duce its debt.

“These bond rat­ings show that Prince Ed­ward Is­land is on a solid fis­cal foot­ing and that our ef­forts to man­age its fi­nances re­spon­si­bly – to­gether with Is­landers – are pay­ing off,” Fi­nance Min­is­ter Allen Roach said.

“By con­tin­u­ing to meet our fis­cal and bud­getary goals, we can hope­fully im­prove our bond rat­ing and sig­nal to po­ten­tial in­vestors that our prov­ince is be­com­ing stronger and more pros­per­ous.”

Moody’s said that the prov­ince’s debt man­age­ment strat­egy of se­cur­ing low in­ter­est rates for long-term ma­tu­ri­ties helps en­sure that debt ser­vice re­mains af­ford­able.

“Fur­ther­more,” it added, “re­cent deficits have been mod­est, with fi­nanc­ing re­quire­ments hav­ing lit­tle im­pact on the prov­ince’s debt lev­els.”

One other bond-rat­ing agency, Stan­dard & Poor’s, will re­lease its rat­ing in the com­ing weeks.

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