VICTORIA — British Columbia’s credit rating has been downgraded, but Premier David Eby says government made a “very clear choice” between making cuts to “meet a credit rating” and “prioritizing British Columbians.”

Moody’s Ratings says Thursday it has lowered B.C.’s baseline credit rating to Aa1 from Aa2 among other changes in creditworthiness because of “large, structural deficits.”

The agency says it has seen a “marked deterioration in the province’s credit fundamentals” and expects “sizable and entrenched deficits” for the next three years.

This year’s budget forecasts a record deficit of $13.3 billion, and Eby says the budget was “incredibly challenging” for a number of reasons, including rising health-care and infrastructure costs.

The premier says the budget was a choice between health-care bearing the “brunt of cuts” or making sure government was doing everything to deliver services for British Columbians, find savings and grow the economy.

Interim B.C. Conservative Leader Trevor Halford says financial markets are telling the government that “B.C. is going broke,” and he says it is time for government to table a budget that restores confidence. 


This report by The Canadian Press was first published March 19, 2026.

Wolfgang Depner, The Canadian Press