The ratings on the Province of Prince Edward Island reflect S&P Global Ratings' opinion of the province's average economic performance and strong financial management. The ratings also reflect our view of the average budgetary performance, very low contingent liabilities, and a very predictable and well-balanced institutional framework for Canadian provinces. PEI's weak budgetary flexibility, high-but-improving debt burden, and liquidity position that is less than adequate relative to that of peers constrain the ratings. We believe PEI's economy benefits from a large public sector that, in addition to a unique business mix and support programs for more volatile sectors (such as agriculture), gives its economy a good measure of stability against external shocks. Its sound wealth level, with GDP per capita
