The ratings on the Province of Prince Edward Island (PEI) incorporate Standard&Poor's Ratings Services' assessment of the following strengths: In our view, PEI's economy has demonstrated exceptional resiliency during the past decade in general, and during the global economic downturn in particular. Its real GDP grew nearly 2% per year, on average, from 2000-2008. What's more, the province expects to avoid entering recession despite the global downturn. It's forecasting real GDP to rise 0.5% in 2009 and 2.0% in 2010. While PEI's economy is small relative to those of Canadian provincial counterparts, we think its unique business mix, its strong public sector composition, and the province's recent stimulus spending and support programs for more volatile sectors (such as
