The defeat of the Harmonized Sales Tax will not affect British Columbia’s AAA rating, the credit-ratings agency Standard & Poor’s confirmed Sunday.

B.C. Minister of Finance Kevin Falcon said in a press release he was pleased with the decision. “I believe this is a reflection of the fiscally conservative approach we have taken over the past decade."

The AAA rating reflects an “extremely strong capacity to meet financial commitments,” according to S&P’s website.

Explaining its decision to leave B.C.'s top rating unchanged, S&P said the province has the solid revenue and expenditure flexibility necessary to meet its deficit targets and a moderate tax-supported debt burden.

At the same time, the agency noted, the province must address its new challenges, including the loss in revenue, the initial administrative costs of transitioning back to a PST/GST tax system, in addition to the likelihood that B.C. will be required to repay $1.6 billion in HST transitional funding provided by the federal government.

“During this time of global economic uncertainty, our credit rating is more important than ever and we will continue to manage taxpayer dollars responsibly while we focus on strengthening our economy and creating jobs,” said Falcon.

Source: Medha, Vancouver Sun