British Columbia’s credit rating has been cut to A+ by S&P Global Ratings as lower immigration and trade uncertainty weigh on the province’s economic growth at the same time that governmental spending is increasing.
The downgrade marks the fourth one in as many years and the ratings outlook remains negative, which implies a one-in-three chance of a further downgrade in the next two years.
British Columbia has materially increased spending to “unparalleled levels” for operations and capital investment, a sign that the province’s commitment to fiscal discipline and stability has wavered in recent years, according to the S&P report announcing the downgrade.
Provincial ministers have argued higher spending is necessary to play catch up on core services like healthcare after the previous government focused more on balancing the books.
“We believe the province is at a turning point with respect to the management of its finances,” S&P said.
The coastal province is budgeting for a record $10.9 billion deficit in the fiscal year that began on Tuesday. That figure does not take into account U.S. tariffs on Canadian goods, or any retaliatory tariffs on American imports.
The record deficit combined with the ratings downgrade puts the province in “a very precarious position,” Peter Milobar, a member of the province’s opposition Conservative Party, and the mayor of Kamloops, a city in British Columbia, told Bloomberg.
Spokespeople for the provincial government didn’t immediately respond to requests for comment.
Chunzi Xu and Thomas Seal, Bloomberg News
©2025 Bloomberg L.P.
