Moody’s reaffirms Island’s bond rating as stable

Agency cites balanced budget, reduced debt levels in province

“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.