Rating agencies affirm B.C.’s financial plan to invest in people, communities
With Moody’s triple-A credit rating announced this week, B.C. continues to have the highest credit ratings of all provinces across the four agencies.
Credit-rating agencies recognize B.C. continues to have the financial strength to support a strong economy and face any unexpected risks from global uncertainty due to the Province’s prudent debt management, transparent reporting and sustained track record for responding quickly to fiscal challenges.
“B.C. is an economic and financial leader among provinces, with the highest ratings across the four rating agencies. Investing in the services people need, including through continued record levels of capital investments, has helped us maintain our economic strength,” said Katrine Conroy, Minister of Finance. “These assessments validate our strong fiscal management plan to continue supporting people and communities through challenging times.”
Rating updates follow the release of provincial budgets in most jurisdictions every year. B.C.’s strong credit rating allows the Province to borrow money and fund projects at competitive rates, enabling government to continue to prioritize community infrastructure needs and service demands in a growing province.
Fitch, DBRS Morningstar and Moody’s have all reaffirmed B.C.’s ratings, showcasing their confidence in the Province’s financial standing. S&P Global Ratings was the only agency to downgrade the Province’s credit rating from AA+ to AA. Fitch highlights B.C.’s continued position for strong growth and history of quickly addressing fiscal challenges. DBRS Morningstar and Moody’s both recognized B.C.’s resilient and diverse economy, alongside the Province’s disciplined management practices and strong balance sheet.
Moody’s, the final agency to release results last week, continues to rate the province with a triple-A rating with a stable outlook, currently the only triple-A rating among provinces. Moody’s noted contingencies as a significant cushion against unanticipated challenges. They also point to the province’s attractiveness to businesses and individuals with strong levels of migration, along with British Columbia’s ESG profile with strong green initiatives and environmental protection policies, high livability index and transparent reporting as key credit strengths.
“The overall picture is positive, and these assessments underscore the overall resilience and positive outlook for B.C.’s financial landscape,” Conroy said. “We have significant fiscal guardrails to prepare us for the future while we continue to invest in British Columbians, who are the backbone of our strong economy. This approach is reflected in our updated ratings.”
Budget 2023 has contingencies and forecast allowances to ensure government can support British Columbians during any potential challenges throughout the year.
Quick Facts:
- On April 4, 2023, Fitch Ratings affirmed B.C.’s AA+ credit rating and stable outlook.
- On April 18, 2023, S&P Global Ratings downgraded British Columbia’s credit rating from AA+ to AA and revised its outlook from stable to negative.
- On May 1, 2023, DBRS Morningstar confirmed British Columbia’s credit rating at AA (high) with a stable trend.
- On May 17, 2023, Moody’s confirmed British Columbia’s credit rating at Aaa with a stable outlook.
Learn More:
To learn more about B.C.’s credit ratings, visit: https://www2.gov.bc.ca/gov/content/governments/finances/debt/credit-ratings