Continued improvement in operating and after-capital balances Solid economic performances in the past five years Moderate direct and tax-supported debt burdens relative to those of its peers Revenue support from the Canadian federal system Significant increases in debt since fiscal 2001 Weaker liquidity levels relative to those of its peers The ratings on the Province of Prince Edward Island (PEI) reflect the following: PEI's financial performances continued to improve in fiscal 2006 (year ended March 31), further consolidating the province's fiscal progress. For fiscal 2006, PEI produced an operating surplus of 3% of operating revenues and a modest after-capital spending surplus of 0.5% of total revenues, its first after-capital surplus in several years. Fiscal 2007 financial performances are likely to
