Dominion Bond Rating Service (DBRS) has confirmed British Columbia’s AA (high) credit rating, thanks to the Province’s growing economy, balanced fiscal policy and affordable debt, Finance Minister Carole James announced today.
“This is a strong affirmation of the province’s direction and fiscal position. The rating recognizes that choices to invest in British Columbians will help chart a path to continued economic stability,” James said. “The investments we are making are laying the foundation for a better B.C. by putting people first with improved services, making life more affordable and supporting a sustainable economy that works for everyone.”
In its Rating Report – Province of British Columbia, DBRS notes that, “The budget update maintains […] surpluses over the medium term with the new budget measures funded largely by a stronger than expected economy.”
It continues: “B.C.’s economy is expanding faster than previously expected and growth remains relatively broad-based. Following estimated growth of 3.6% in 2016, the provincial economy is expected to expand by a further 2.9% in 2017 before slowing to a more sustainable pace of around 2% over the medium term.”
DBRS also notes, “The low debt burden results in relatively low interest costs and greater flexibility to absorb the impact of rising interest rates...”
B.C. has been rated AA (high) with DBRS since May 2007, when the government was upgraded from AA.
B.C. is the only province rated triple-A with all three international credit rating agencies: Moody’s, Standard & Poor's, and Fitch.
The DBRS report is available here: http://www.dbrs.com/research/318144?docId=318144
Sonja ZoellerActing Communications Manager
Ministry of Finance