Research Update: Province of Prince Edward Island Outlook Revised To Stable From Positive On COVID-19 Effects, 'A' Ratings Affirmed

The widespread impact of the COVID-19 pandemic on Prince Edward Island's economy will result in deeper after-capital deficits and a modestly higher debt burden in the outlook horizon, with significant uncertainty remaining. Nevertheless, we expect effective containment of the coronavirus locally and continued conservative fiscal policies will help soften the pandemic's impact on the province's growth prospects and budgetary results. Accordingly, we are revising our outlook to stable from positive, and affirming our 'A' long-term issuer credit and senior unsecured debt ratings on the Province of Prince Edward Island. The stable outlook reflects our expectation that despite the province's economic contraction in 2020, activity will begin to recover in 2021, with gradual improvement toward more sustainable fiscal results in the

...- The widespread impact of the COVID-19 pandemic on Prince Edward Island's economy will result in deeper after-capital deficits and a modestly higher debt burden in the outlook horizon, with significant uncertainty remaining. - Nevertheless, we expect effective containment of the coronavirus locally and continued conservative fiscal policies will help soften the pandemic's impact on the province's growth prospects and budgetary results. - Accordingly, we are revising our outlook to stable from positive, and affirming our 'A' long-term issuer credit and senior unsecured debt ratings on the Province of Prince Edward Island. - The stable outlook reflects our expectation that despite the province's economic contraction in 2020, activity will begin to recover in 2021, with gradual improvement toward more sustainable fiscal results in the outlook horizon....

Research Update