B.C.’s triple-A long-term credit rating has been reaffirmed by Standard and Poor’s (S&P) Global Ratings, Finance Minister Carole James said Friday.
James said the rating shows the confidence investors and financial markets have in the NDP plan for British Columbians.
In its report, S&P wrote, “We expect the Province of British Columbia (B.C.) economy will continue expanding modestly and that, in combination with sound fiscal management, will contribute to strong budgetary outcomes.”
The report pointed to B.C.’s diversified economy and multiple trading partners as factors that would help it defray some of the uncertainties related to U.S. fiscal and trade policy.
READ MORE: B.C. budget: Is B.C.’s credit rating at risk?
The S&P AAA rating has been in place since 2007.
B.C.’s credit rating has faced scrutiny since the NDP eliminated tolls on the Port Mann and Golden Ears bridges, adding $3.5 billion to B.C.’s taxpayer supported debt load.
That move changed the ratio of taxpayer supported debt to provincial revenue from around 82 per cent to more than 91 per cent, raising concerns from some analysts that the province’s credit rating could be downgraded.
The province has since also pledged to pay for the entirety of the $1.37-billion Pattullo Bridge replacement.
The ministry says B.C. is the only province rated triple-A with all three international credit rating agencies: Moody’s, S&P and Fitch. Canada’s domestic rating agency, Dominion Bond Rating Service, confirmed BC’s AA (high) credit rating earlier this month.
The strong credit rating means lower borrowing costs for the province, along with lower costs to service B.C.’s $69-billion debt.
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