‘Fiscal mismatch’: S&P downgrades B.C.’s credit rating for fourth time in four years

By Canadian Press on April 2, 2025.

VICTORIA — Credit rating agency S&P has downgraded British Columbia’s rating for the fourth time in four years, citing record capital spending and a “fiscal mismatch” in its operations.

S&P Global Ratings cut the province’s long-term issuer credit rating to A+ from AA-.

It says the downgrade comes as a result of “considerable” deficits and “relatively rapid debt accumulation” continuing through to the 2028 fiscal year.

The agency says there’s a negative outlook for B.C.’s finances, reflecting a one-in-three chance of a further downgrade in the next two years if the province’s “commitment to fiscal consolidation continues to waver.”

Finance Minister Brenda Bailey’s March budget forecasted a record deficit of $10.9 billion this fiscal year, while the end of B.C.’s consumer carbon tax on Tuesday is poised see the deficit continue to grow.

S&P has also cut B.C.’s short-term rating to A-1 from A-1+.

This report by The Canadian Press was first published April 2, 2025.

The Canadian Press