MOODY’S has confirmed British Columbia’s Aaa long-term credit rating, citing the province’s strong economy, and the provincial government’s prudent fiscal management and budgeting safeguards, Finance Minister Carole James said on Friday.
“Moody’s confirmation of B.C.’s triple-A credit rating is another indication that our fiscal plan for British Columbians is built on a solid foundation,” James said. “This is positive news, as we prepare to deliver Budget 2018, which will take concrete steps to build a better British Columbia.”
In its rating report, Moody’s said B.C.’s “wide diversification of sectors and markets reduces the vulnerability of the provincial economy from sector-specific or trading partner-specific shocks, including uncertainty with US trade policies including NAFTA negotiations.”
Moody’s points to British Columbia’s “economic strength including strong GDP growth and low unemployment” as core elements in its Aaa rating.
British Columbia is the only province rated triple-A with all three international credit rating agencies: Moody’s, Standard and Poor’s, and Fitch. Fitch confirmed the province’s rating in December 2017. Standard and Poor’s confirmed the rating and superior financial management practices in November 2017. As well, domestic rating agency Dominion Bond Rating Service confirmed B.C.’s AA (high) credit rating in October 2017.
British Columbia’s high credit rating means the Province has lower debt-servicing costs, allowing for more investments that improve services and affordability for British Columbians.