We expect the Province of Prince Edward Island (PEI) to return to fiscal balance in 2018, bolstering its budgetary performance, and its debt burden to moderate in the next two years. The local economy performed well in 2016, but we believe that demographic challenges will continue to pressure provincial budgets. We are affirming our 'A' long-term issuer credit and senior unsecured debt ratings on PEI, and our 'A-1' short-term rating on the province. The stable outlook reflects our expectation that, in the next two years, PEI's economy will experience stable growth, helping to sustain its operating surpluses and mitigate the need for material debt borrowing. On Oct. 27, 2017, S&P Global Ratings affirmed its 'A' long-term issuer credit and senior
