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The agency points to P.E.I.’s real GDP increase of 2.8 per cent in 2025, higher than the national growth rate of 1.6 per cent. 

However, DBRS says the Island’s small economy, increasing government debt and need for revamped infrastructure all present challenges in the medium term. 

Last month, two other agencies left their credit ratings for the province unchanged but downgraded the fiscal outlook of the Island from "stable" to "negative."

Premier Rob Lantz’s government posted a record budget deficit of $410 million in April, and net debt is expected to grow to $4.9 billion by the 2028-29 fiscal year. 

This report by ¹ú²úÓÕ»ó¸£Àû was first published June 29, 2026.