Standard and Poor’s has affirmed B.C.’s AAA credit rating with a stable outlook, saying the ratings reflect the province’s strong management and improving budgetary performance, Minister of Finance Michael de Jong announced today.

Standard and Poor’s highlights B.C.’s “large resource endowments, high-ranking livability, and close proximity to Asian markets.” Moreover, “B.C.’s growing trade orientation toward Asia [offers] diversification against potential economic weakness in North America.”

The rating agency notes the province’s strengths include, “a predictable and well-balanced institutional framework, strong budgetary flexibility, very positive management and liquidity, and moderate contingent liabilities.”

The agency says: “The province displays very positive financial management practices. We find its financial disclosures transparent, comprehensive and timely. Its financial practices are among the best of the Canadian provinces.”

Standard and Poor’s says B.C.: “has demonstrated exceptional access to global capital markets, which in our view is very positive for its access to liquidity.”

The agency asserts it expects that: “B.C.’s economy will continue expanding modestly through 2015. [This] coupled with the policies … tabled in its fiscal 2015 budget, will contribute to a significant decline in the province's after-capital deficit, falling tax-supported debt as a percent of consolidated operating revenues, and a stable internal liquidity balance in the next two years.”

Since November 2004, the province has received seven credit rating upgrades. British Columbia continues to maintain the highest credit rating possible with Moody’s, Standard and Poor’s and Fitch. Fitch and Moody’s most recently affirmed their AAA ratings in April and May 2014. The Dominion Bond Rating Service affirmed B.C.’s AA (high) credit rating in April 2014.

Quote:

Minister of Finance Michael de Jong:

“Controlling spending to achieve a balanced budget is never easy, but it clearly pays dividends. Standard and Poor’s recognizes the tough decisions we’ve had to make to balance our budget. Their affirmation of our triple-A credit rating supports our mandate to save taxpayers money by reducing the costs of our debt.”

Media Contacts:

Jamie Edwardson
Communications Director
Ministry of Finance
250 356-2821