Fitch affirms B.C.’s AAA credit rating and strong fiscal plan

Only province rated triple-A with all three international credit rating agencies


Carole James
Photo: Vinnie Combow

FITCH Ratings has affirmed British Columbia’s AAA credit rating, citing the province’s strong economic performance, stable fiscal results and diversified economy.

“All three international rating agencies have looked at our government’s first full budget, recognized B.C.’s strength and confirmed our AAA credit rating,” said Carole James, Minister of Finance. “British Columbians and investors know our plan to put people first is affordable, prudent and sustainable.”

In the credit rating report, Fitch said, “British Columbia benefits from a broad and steadily growing economy, and conservative and prudent fiscal management.”

Fitch also noted, “The province is a key contributor to Canada’s overall economic profile, with provincial real GDP in 2017 accounting for approximately 13% of national GDP.” The report said that B.C. “is likely to exceed performance of most other provinces in the near to medium term,” and “debt position is well-managed, and compares favourably to that of provincial peers.”

B.C. is the only province rated triple-A with all three international credit rating agencies:

* Moody’s affirmed the province’s Aaa (stable) long-term credit rating in May.

* Standard & Poor’s affirmed B.C.’s ‘AAA’ long-term credit rating in April.

* Domestic rating agency Dominion Bond Rating Service (DBRS) confirmed B.C.’s AA (high) credit rating in April. B.C. is DBRS’ highest-rated province in Canada.

B.C.’s high credit rating means that the province has lower debt servicing costs, ensuring that more funding is available to dedicate to making life more affordable, and investing in services for people.