VICTORIA - Dominion Bond Rating Service has upgraded the Province of British Columbia's credit rating to AA (high), Finance Minister Carole Taylor announced today.

Dominion Bond Rating Service raised British Columbia's credit rating to AA (high) from AA, citing the Province's track record of fiscal discipline, budget surpluses, improved tax competitiveness, and progress at reducing B.C.'s debt-to-GDP burden to its lowest level in over 15 years.

"This is the second credit upgrade from DBRS in as many years," said Taylor. "Following similar upgrades from Moody's and S&P, British Columbia has earned some of the highest credit ratings in the world."

This marks the first time British Columbia has ever held an AA (high) rating from DBRS. This places B.C. second in DBRS's provincial rankings next to Alberta which, along with the Government of Canada, is rated AAA.

In 1999, citing concerns over the significant deterioration in the Province's fiscal position and weak economic performance, DBRS downgraded British Columbia's credit rating to AA (low) from AA. In 2001, the government set out a plan to balance British Columbia's budget and revitalize the economy. Following the successful achievement of those goals, DBRS upgraded B.C.'s credit rating to AA from AA (low) in March 2005.

DBRS is one of several ratings agencies that regularly examine the financial health of governments to determine risk associated with the issuance of government bonds. Since November 2004, the Province has received six credit rating upgrades. Most recently, Moody's Investor Services upgraded B.C.'s credit rating to Aaa in October 2006, while Standard and Poor's Investor Services upgraded B.C. to AA+ in April 2006.

"Our credit ratings tell potential investors that British Columbia is a great place to invest, with exceptional opportunities," said Taylor. "I'm so pleased that with the Olympics right around the corner, when the eyes of the world will be watching, we have such a positive story to show the global investment community."

Sustained improvements in credit ratings save taxpayers debt-service costs and allow for investment in other government priorities. In the fall of 2001, the Province borrowed at interest rates that were nine basis points higher than the Province of Ontario, the market benchmark among provincial issuers. Today, British Columbia's borrowing rate is about five basis points lower than Ontario's. Based on the Province's 2007/08 borrowing program, this improvement translates into interest savings of about $63 million over a 10-year average term.