The ratings on the Province of Prince Edward Island (PEI) reflect the following: PEI's financial performances continued to improve in fiscal 2006 (year ended March 31), further consolidating the province's fiscal progress. For fiscal 2006, PEI produced an operating surplus of 3% of operating revenues and a modest after-capital spending surplus of 0.5% of total revenues, its first after-capital surplus in several years. Fiscal 2007 financial performances are likely to be in line with the last two fiscal years as the province is budgeting for operating surpluses of about 2% of operating revenues and an after-capital deficit of about 1.5%. The provincial economy has generated solid results in recent years. From 2002 to 2005, real GDP growth averaged almost 3%
