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S&P Cuts B.C. Credit Rating Again Amid Rising Debt and Deficits
S&P cited a debt burden at 255% of operating revenue and a projected $13.3 billion deficit as it warned of weaker investor confidence.
- On Thursday, Standard & Poor's Global Ratings downgraded British Columbia to A from A-plus, marking the fifth reduction since 2021 for the province that held a top AAA rating for 14 years.
- Standard & Poor's cited the province's fiscal trajectory, noting the debt burden has reached 255 per cent of operating revenue and warning that "sizable deficits will persist" without a clear plan to balance the $13.3 billion deficit.
- Jairo Yunis, director of policy at the Business Council, said the downgrade signals "something wrong" with provincial finances, warning that deteriorating fiscal trajectories discourage businesses from hiring or building facilities.
- Last month, Premier David Eby defended his government's fiscal approach, stating officials made a "very clear choice" to focus on "prioritizing British Columbians" rather than making cuts to "meet a credit rating."
- Standard & Poor's expects subdued output due to trade uncertainty, though the province anticipates about $50 billion in final investment decisions; fiscal benefits from energy and LNG projects likely will not appear until the 2030s.
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B.C.'s latest credit downgrade signals 'something wrong' with finances: economist – Energeticcity.ca
VICTORIA — An economist says the latest downgrade for British Columbia’s credit rating will discourage companies from investing in the province. Standard & Poor’s global ratings lowered its rating this month for B.C. to A from A-plus after Moody’s lowered its rating to double-A-one from double-A-two a few weeks after the provincial budget was released. While B.C. has taken “some corrective fiscal measures” by cutting costs and raising revenues, …
CFJC Today Kamloops+3 Reposted by 3 other sources
B.C.’s latest credit downgrade signals ‘something wrong’ with finances: economist
VICTORIA — An economist says the latest downgrade for British Columbia's credit rating will discourage companies from investing in the province. Standard & Poor's global ratings lowered its rating this month for B.C. to A from A-plus after Moody's...
Coverage Details
Total News Sources32
Leaning Left22Leaning Right1Center2Last UpdatedBias Distribution88% Left
Bias Distribution
- 88% of the sources lean Left
88% Left
L 88%
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