P.E.I. to save on debt with improved bond rating
Higher bond rating means lower interest rates on government debt
P.E.I's bond rating has gone up for the first time in nearly two decades.
The last time the province's bond rating was increased was in 2000. Now, the DBRS bond rating agency has upgraded the province's bond rating from A low to A and changed trends from stable to positive.
"The Island economy is performing well in large part due to the efforts of hardworking Islanders," said Minister of Finance Darlene Compton in a release.
"As a government, we need to keep this momentum going while investing in key areas important to Islanders so that we can create a province where everyone has the ability to succeed."
A higher bond rating means lower interest rates on government's debt. The upgrade is because of improvement in P.E.I.'s credit profile over the last five years with the province pursuing growth policies aimed at increasing population which has improved economic activity and outlook, a release from DBRS said.
The PC government presented a balanced budget and though spending continues to rise, the province continues to benefit from things such as infrastructure-related federal transfers, the DBRS release said.
"Our first budget was responsive yet responsible. It showed that government was listening to the needs of Islanders and considering those priorities as part of thoughtful fiscal planning," Compton said in a release.