We are affirming our ratings, including our 'A' long-term issuer credit rating, on the Province of Prince Edward Island (PEI). 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's debt burden is fairly moderate compared with that of similarly rated local and regional governments. The stable outlook reflects our expectation that PEI will achieve its budgeted operating and after-capital deficit balances in fiscal 2012, and that it will subsequently narrow these such that it attains its goal of reestablishing a balanced operating budget by fiscal 2014. On July 12, 2011, Standard&Poor's Ratings Services affirmed its ratings, including its 'A' long-term
