Moody's Investors Service has confirmed the province's triple-A credit rating, Finance Minister Colin Hansen announced Wednesday.
According to Moody's credit report, "The province's record of managing fiscal pressures and the significant debt reduction achieved in recent years has put British Columbia in a strong position to face current fiscal challenges."
In September's B.C. budget update, the province expects to accumulate $5.4 billion in operating budget deficits for the next three fiscal years. It projects a $2.8 billion deficit this year, $1.7 billion for 2010-2011 and $945 million in 2011-2012.
To partially fund the operating shortfall, Hansen said in October that the province will be selling provincial bonds, something it has not had to do for years because of its operating budget surpluses.
Having a high credit rating will help keep borrowing costs relatively lower than other provinces which have lower ratings. B.C. and Alberta are the only two provinces with AAA ratings.
B.C. has maintained its AAA rating since October 2006, when Moody's increased the province's rating from AA1. Moody's cited a well-structured fiscal framework and expectations of a reduced debt load at the time as key contributors to the ratings improvement.