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