Moody's Confirms British Columbia AAA Credit Rating
VICTORIA – Moody’s Investors Service has confirmed British Columbia’s AAA credit rating, noting the Province’s track record of prudent fiscal planning and its effective management of fiscal pressures, Finance Minister Colin Hansen announced today.
“This is not just confirmation of B.C.’s top rating among the provinces, but also that we are on the right path to recover first from the ongoing economic slowdown,” said Hansen. “Our low debt burden, the fiscal flexibility that allows us to adjust revenues and expenses to meet fiscal challenges, and the fact that we have a large and diversified economy supporting a productive tax base were recognized as factors in confirming the highest available rating.”
Moody’s report itself notes, “...the province’s track record of managing fiscal pressures and the significant debt reduction achieved in recent years has put British Columbia in a strong position to face current fiscal challenges.”
In October, Hansen and Ministry of Finance staff met with institutional investors and major investment firms in New York, Montreal, Toronto and Vancouver. The tour’s purpose was to broaden B.C.’s investor base, encourage investors to buy B.C. bonds and ensure investors keep bonds they already have. These measures help maintain the Province’s low borrowing costs and strengthen investor confidence in B.C.
“Having the best possible rating from Moody’s is excellent news right now because it means we save millions in debt servicing costs,” said Hansen. “As hosts of the 2010 Winter Olympics, we’re about to open up our province to thousands of visitors and billions of viewers. High credit ratings and sound fiscal policies tell the world that British Columbia is a great place to invest.”
Since November of 2004, the Province has received seven credit rating upgrades. Most recently, Dominion Bond Rating Service upgraded B.C.’s credit rating to AA (high) in May 2007, Standard and Poor’s upgraded B.C. to AAA in May 2007, while Moody’s Investors Service upgraded B.C. to AAA in October 2006.
