Dominion Bond Rating Service (DBRS) has confirmed the Province of British Columbia’s AA (high) credit rating, saying the trends are stable and supported by the Province’s “unmatched fiscal discipline” and an improving economic outlook, Finance Minister Michael de Jong announced today.

The DBRS report says: “British Columbia continues to demonstrate strong fiscal discipline and remains in an enviable position relative to provincial peers, as the latest budget points to a small surplus of $184 million in 2014-15.”

The report also points out the Province’s reported surplus of $175 million in 2013-14, which DBRS says, “Marks a moderate improvement from budget and [is] one of the best fiscal results among provinces.”

DBRS notes B.C. has the third-lowest debt-to-GDP ratio of all provinces in Canada. The agency praises B.C. for its conservative assumptions and modest contingencies in its budgets, which DBRS says have “helped to establish a track record of prudent fiscal management.”

The agency also praises the Province’s competitive tax regime, asserting, “The overall tax regime for individuals and corporations remains one of the most competitive in Canada.”

DBRS points out that B.C. adheres to very high accounting and reporting standards and has joint trusteeship agreements with major employer groups, both of which contribute to the Province’s high score.

B.C. has been rated AA (high) with DBRS since May 2007, when the government was upgraded from AA. Today’s confirmation of DBRS’s AA (high) rating follows the introduction of Balanced Budget 2014 in February.

British Columbia continues to maintain the highest credit rating possible with Moody’s and Standard and Poor’s. Moody’s confirmed B.C.’s AAA credit rating in September. Standard & Poor's most recently affirmed its AAA rating in April following Budget 2013.

Since November 2004, the Province has received seven credit rating upgrades.

Quotes:

Finance Minister Michael de Jong -

“This government has worked hard on the fundamentals to maintain disciplined spending and keep debt affordable through the economic downturn. The judgment of the rating agencies is an objective confirmation that by balancing our budget and keeping our debt affordable for British Columbians, our finances are on the right track.”

“The Dominion Bond Rating Service recognizes that B.C. has one of the most competitive tax regimes in the country, and ranks highly compared to other provinces - particularly when it comes to the debt-to-GDP ratio and budget surpluses. This affirms our balanced approach and strong fiscal management.”

Media Contacts:

Jamie Edwardson
Communications Director
Ministry of Finance
250 356-2821