Nova Scotia's Credit Rating Upgraded by DBRS

For the second time in as many weeks, Nova Scotia's credit rating took a significant leap today, Aug. 26.

Dominion Bond Rating Service (DBRS) has upgraded the province's long-term rating to A (low) from BBB (high) and confirmed the province's short-term credit rating as stable.

On Aug. 18, Standard and Poor's upgraded Nova Scotia's financial outlook to A-minus positive from A-minus stable.

"This is extremely good news for Nova Scotia," said Finance Minister Peter Christie. "It makes Nova Scotia more attractive to a broader base of investors."

In its report, DBRS said the upgrade is based on the following factors:

• substantial improvement in fiscal results in recent years;
• fully consolidated budget accounting;
• lower debt-to-GDP ratio (dropped by about 13 per cent over the past eight years); and
• the recent introduction of a debt reduction plan.

Mr. Christie said the DBRS upgrade and the Standard and Poor's positive outlook are significant developments and independent verification that Nova Scotia is responsibly managing its finances. "Our fiscal discipline is paying off," Mr. Christie said, "but we must maintain that discipline to meet the challenges that we know lie ahead. If we can do that, our ratings should continue to improve."

This is the first time that DBRS has upgraded Nova Scotia's credit rating.