The rating on the Province of Prince Edward Island (PEI), located in Canada's Atlantic region, reflects the following positive credit considerations: -- PEI has a low and stable tax-supported debt-to-GDP ratio, which compares quite favorably with many other Canadian provinces. Tax-supported debt was roughly 24% of GDP at the end of fiscal 2001 (year ended March 31). -- The province had good budgetary performances in past years, and it is likely the province will remain committed to essentially balancing its budget, despite near-term economic challenges. -- A large portion of PEI's revenue support is provided by Canada's system of intergovernmental transfers. This is the largest single revenue source for the province, accounting for roughly 41% of its total revenues in
