The ratings on the Province of Prince Edward Island (PEI) reflect the following credit strengths: The province's burdens of direct and tax-supported debt fit well within its peer group in the 'A' ratings category. At the end of the 2005 fiscal year (year ended March 31), net tax-supported and direct debt as a share of GDP represented 32% and 29%, respectively. Standard & Poor's Ratings Services expects that there will not be an appreciable rise in debt burdens in the current fiscal (2006) as a modest increase in direct debt is offset by solid output growth. The provincial economy produced a healthy performance in 2004 as both real GDP and employment recorded moderate growth. Real GDP increased 1.7% in 2004
