Fitch Ratings has affirmed the Province’s credit rating as AAA and its long-term outlook as stable, explaining the rating reflects fiscal management practices that result in a stable fiscal performance and a well-managed liability profile, Minister of Finance Michael de Jong announced today.

Fitch praises the Province’s balanced budget saying, “British Columbia has demonstrated commitment to balanced fiscal operations,” pointing to Budget 2014 and the three-year fiscal plan as examples of B.C.’s “disciplined financial management.”

Furthermore, Fitch points out that Budget 2014 “continues British Columbia’s practice of including built-in cushions in the form of expense contingencies and revenue forecast allowances,” and takes additional protection against revenue volatility by building the budget on economic growth predictions lower than those of independent economists.

The agency “considers British Columbia’s financial planning and controls to be strong” and notes that the Province controlled spending through mandates that guided contract negotiations with unions to hold down labour costs and held health-care spending growth at or below 6%.

Fitch asserts that B.C.’s “overall economic profile remains sound,” and that the Province’s “debt position remains manageable … and compares favourably to the other Canadian provinces.”

Since November 2004, the Province has received seven credit rating upgrades. 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 2013 following Budget 2013. The Dominion Bond Rating Service affirmed B.C.’s AA (high) credit rating in April 2014.

Quotes:

Minister of Finance Michael de Jong -

“Fitch Ratings’s affirmation of B.C.’s triple-A credit rating is further evidence that this government’s strong fiscal management and controlled spending is making a difference for British Columbians.”

“This rating is another great endorsement of our fiscal plan and balanced budget, and recognizes the hard work we’ve done to achieve these goals. British Columbians have every right to be proud of this rating as it reflects the hard work and restraint of taxpayers, too, during tough economic times as we’ve limited spending and held down labour costs.”

“British Columbia is leading the country when it comes to prudent fiscal management and reducing the debt burden for taxpayers. Credit ratings confirm that we are on the right track and help reduce our borrowing costs.”

Media Contacts:

Jamie Edwardson
Communications Director
Ministry of Finance
250 356-2821