Bond rating agency likes what it sees in P.E.I. budget

The DBRS bond rating agency is maintaining the P.E.I. government's A low rating with a positive trend following the tabling of the budget this week, and may raise the province's rating before the fall.

A higher rating would mean lower interest rates on the government's debt. The rating has been A low for a number of years, but the trend moved to positive from stable last year.

"We've seen a real concerted effort by the government to reduce the budget deficits and put the province's growth on a stronger footing," said Paul Lebane, vice president of public finance.

"Our first sense is that the Conservatives and the Liberals in terms of the fundamentals of fiscal policy they aren't wildly different. It's not like in Ontario where we saw a fundamental shift from the Liberals to the PCs."

DBRS is also encouraged by the talk of collaboration in the legislature, said Lebane, which it expects will lead to a more stable minority government and financial markets like stability.

Lebane said if the budget passes, which he expects it will, DBRS officials with meet with government officials, including the premier, and consider whether to increase the A low rating to A.

Lebane expects that decision will be made before the end of the summer.

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