Research Update: Province of Prince Edward Island Issuer Credit Rating Affirmed At 'A'; Outlook Remains Stable

We expect conservative fiscal policies to sustain the Province of Prince Edward Island's (PEI's) modest consolidated surpluses and gradually lower debt burden projected in the next two years. The local economy continued to perform well in 2017; however, we believe that demographic challenges will continue to pressure provincial budgets. As a result, 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 the province's operating surpluses and mitigate the need for material borrowing. On Oct. 22, 2018, S&P Global Ratings affirmed its 'A' long-term issuer credit

...+ We expect conservative fiscal policies to sustain the Province of Prince Edward Island's (PEI's) modest consolidated surpluses and gradually lower debt burden projected in the next two years. + The local economy continued to perform well in 2017; however, we believe that demographic challenges will continue to pressure provincial budgets. + As a result, 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 the province's operating surpluses and mitigate the need for material borrowing....

Research Update