Province Gets Positive Credit Outlook

A major bond-rating agency has given Nova Scotia a positive outlook on its credit rating.

Standard and Poor's has boosted the outlook to positive from stable, while the province's credit rating remains A+.

The ratings agency said the improved outlook reflects Nova Scotia's "sustained improvement" in fiscal performance over the past five years, including:

• "significant progress in reducing its net tax-supported debt burden;"
• "substantially improved transparency in the province's financial reporting practices;" and
• "a dramatic reduction in the foreign currency exchange exposure of Nova Scotia's debt."

"We have made considerable progress in managing the province's finances over the last eight years," said Finance Minister Michael Baker. "It's very satisfying to have this improvement recognized by a major rating agency."

The positive factors are offset by Nova Scotia's relatively high debt burden, spending pressures for health care and infrastructure, and a somewhat less diversified economy than other jurisdictions, the agency said.

Standard and Poor's is one of three international rating agencies that analyze and report on Nova Scotia's financial performance.

Credit ratings help investors assess the level of risk involved in buying provincial bonds. An improved credit rating helps improve access to financial markets and reduce the cost of financing the province's debt.

Nova Scotia has seen its credit ratings steadily improve over the last few years.

If Nova Scotia meets Standard and Poor's expectations, the positive outlook could lead to a higher credit rating in the future.