Credit Rating Agency Gives Nova Scotia Positive Outlook

Nova Scotia continues to show resilience despite external global financial challenges, says the DBRS credit rating agency.

DBRS revised Nova Scotia's long-term rating from stable to positive. They said the improved rating reflects, "the notable progress the province has made towards lowering its debt-to-GDP ratio," as well as, "its prudent and forward-looking approach to fiscal management ... and a much-improved debt structure."

"Rating agencies continue to recognize Nova Scotia's strong fiscal management," said Finance Minister Michael Baker. "The province has made significant progress in lowering its debt and has posted a surplus for seven straight years."

DBRS noted that Nova Scotia's debt-to-GDP ratio was expected to continue to fall to 34 per cent in 2008-09 from a ratio in excess of 50 per cent 10 years ago. It also noted improvements in debt structure, with foreign currency debt exposure now almost eliminated, compared with 50 per cent a decade ago.

DBRS is one of three rating agencies that analyze and report on Nova Scotia's financial performance. When buying provincial bonds, credit ratings help investors assess the level of risk. Improved credit ratings enhance the province's access to financial markets.