The ratings on the Province of Prince Edward Island (PEI) reflect an extremely strong economic performance in 2002, a tax-supported debt to GDP ratio that compares well with similarly rated Canadian and international peers', and the strong revenue support provided by the Canadian federal system. The ratings' strength is counterbalanced by continuing weak budgetary performances in the past two fiscals and the consequent increase in tax-supported debt. The provincial economy rebounded from a poor potato harvest in 2001 with an extremely strong performance in 2002, when real GDP rose 6% from the year previous. Labor market results have continued to be impressive, with more than a decade of employment growth and generally declining unemployment rates. The province forecasts that real
