Victoria: International credit rating agency Moody’s Investors Service has affirmed British Columbia’s Aaa credit rating, citing strengths in B.C.’s diversified economy, consistent balanced budgets, projected surpluses and strong debt affordability.
“Moody’s Aaa credit rating demonstrates that investors and financial markets have confidence in our province and approach,” said Carole James, Minister of Finance. “Our plan is working. Through strong fiscal management and a budget that lifts people up, we’re delivering on our commitments to make life better and build a strong, sustainable economy for the people of B.C.”
In its release, Moody’s highlights B.C.’s strong debt affordability, strong liquidity and fiscal management. Moody’s further states that B.C.’s “continued fiscal surpluses, strong economic growth that will exceed the national average, and a diversified trade and export profile which protects the province from specific-sector based shocks” are key factors that support B.C.’s high rating.
B.C. is the only province rated triple-A with all three international credit rating agencies: Moody’s, Fitch and Standard & Poor’s.
High credit ratings mean that B.C. has lower debt servicing costs, which makes more funding available for government priorities.