BC's Credit Rating Drops, Warning Lights Flash

0:00British Columbia's credit rating took another hit from Standard & Poor's, dropping to A from A Plus this month. That follows Moody's downgrade to AA1 from AA2 right after the province released its latest budget. The province has trimmed some spending and high revenues to fix things, but sizeable deficits keep rolling in. Officials project a $13.3 billion gap, with no clear path to balance the books anytime soon. Economist gyro Unis, with the business council of BC, says this marks the 5th S&P cut since 2021, flashing warning lights on the finances. Higher ratings mean steeper interest costs, yanking funds from infrastructure and key services folks rely on. The finance ministry stayed quiet on the latest news, but premier David Evie pushed back last month, stressing his team picked people over harsh cuts. To chase ratings, Unis gets that, yet points out those big projects won't deliver fiscal wins until the 2030s. With borrowing, cost climbing and investors eyeing risks, BC faces tougher choices to steady the ship and spark real growth down the line.

1:06I'm Cory with the story. That's your Vancouver News today update, AI powered and always on.