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Saskatchewan’s credit rating remains at AA: S&P Global Ratings report

S&P Global Ratings has affirmed Saskatchewan's credit rating at AA with a stable outlook in a recent report, announced by the province on Wednesday. File / Global News

A recent S&P Global Ratings report shows that Saskatchewan’s credit rating remains at AA based on what it called a “stable outlook.”

“All three major rating agencies have now updated their credit rating and outlook for Saskatchewan following the 2021-22 Budget, and we continue to have the second-highest overall credit rating among Canadian provinces,” said Donna Harpauer, Saskatchewan’s deputy premier and finance minister.

Read more: Saskatchewan maintains ‘stable outlook’ with AA credit rating from S&P Global

“We are pleased that the major rating agencies continue to have confidence in our government’s fiscal and budgetary approach, despite the significant challenges posed by the global COVID-19 pandemic.”

In its report, S&P said it expects that “with the resumption of economic growth, the province’s revenues will begin to recover, and its fiscal results will materially improve in the next two years.”

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It said the province’s creditworthiness has to do with its strong financial management.

Read more: Standard and Poor’s cuts Saskatchewan credit rating, cites low commodity prices

“With respect to revenue and expenditure management, the government has historically demonstrated a willingness to take corrective steps to control spending to offset revenue volatility,” the report read.

“Debt and liquidity management policies and practices are prudent and risk-averse.”

S&P also mentioned that with higher commodity prices on top of the economy reopening, Saskatchewan’s economic rebound should improve as the year moves along.

Click to play video: 'Global News Morning Market & Business Report – August 17, 2021' Global News Morning Market & Business Report – August 17, 2021
Global News Morning Market & Business Report – August 17, 2021

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