Resilient economic performance through the recession Moderate, although rising, tax-supported debt burden Positive financial management Significant operating and after-capital account deficits Weak liquidity relative to that of peers The ratings on the Province of Prince Edward Island (PEI) reflect Standard&Poor's Ratings Services' assessment of the following strengths: PEI's economy was exceptionally resilient through the recession, suffering only a real GDP decline of 0.1% in 2009, before rebounding an estimated 1.9% in 2010. The province is forecasting real GDP to rise another 1.7% in 2011. While PEI is the smallest Canadian province, we think its unique business mix, large public sector composition, and stimulus-related capital spending and support programs for more volatile sectors (such as agriculture) have given its
