MOODY’S has affirmed British Columbia’s Aaa (stable) long-term credit rating, citing the Province’s prudent fiscal management and planning, and strong and diversified economy, Finance Minister Carole James said on Thursday.
“Moody’s affirmation of our Aaa rating is further validation that our plan to make life more affordable, improve services and create good jobs for people is prudent and fiscally sustainable,” James said. “Moody’s rating signals confidence in our province, and in the future of our strong economy.”
Moody’s states that “British Columbia’s economic strength including strong GDP growth and low unemployment, along with a level of taxation that is at the lower end of Canadian provinces, represent important credit positive elements of the Aaa rating.”
The report also states that British Columbia’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 U.S. trade policies and NAFTA re-negotiations.”
British Columbia is the only province rated triple-A with all three international credit rating agencies: Moody’s, Standard & Poor’s and Fitch.
The domestic rating agency Dominion Bond Rating Service (DBRS) affirmed B.C.’s AA (high) credit rating in April 2018. British Columbia is DBRS’ highest-rated province in Canada.
B.C.’s high credit rating means that the Province has lower debt servicing costs, ensuring that more funding is available to dedicate to making life more affordable and investing in services for people.