Source: Government of Saskatchewan
Released on June 22, 2020
Stating in its report that Saskatchewan’s creditworthiness is supported by the province’s strong financial management, S&P Global Ratings (S&P) has affirmed Saskatchewan’s AA credit rating and stable outlook.
S&P states in its report that:
“The stable outlook reflects our expectation that deterioration in Saskatchewan’s budgetary performance as a result of the pandemic will be temporary, with the province recording steady improvement in fiscal results over the next two years.”
With S&P’s rating, Saskatchewan maintains the second-highest credit rating in the country, when ratings from the three major agencies are considered. This includes Moody’s Investors Service Triple A rating, the recent AA(low) rating from the DBRS Morningstar, and S&P’s confirmed rating issued in its report Friday, June 19.
“S&P’s rating confirmation supports Saskatchewan’s strong fiscal foundation,” Finance Minister Donna Harpauer said. “The agency’s report also notes that while the effects and challenge of the pandemic are considerable, our province is in a position to move forward and recover. It is a pandemic deficit, not a structural deficit. We will continue to invest in the priorities of Saskatchewan people and develop a plan to return to balance, over time.”
The report also notes that:
“In our current assumptions, we expect that beyond 2020, the province’s economic and financial recovery will be sufficient to allow the government to resume its focus on fiscal sustainability.”
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