The Government of Saskatchewan is celebrating the fact the province’s credit rating remains strong following the 2021-22 budget after S&P Global Ratings affirmed Saskatchewan’s AA rating in a recent report.
S&P said that it expects the province’s revenues to begin to recover following the resumption of economic growth, while Saskatchewan’s fiscal results are expected to improve in the next two years.
“Saskatchewan’s creditworthiness is supported by what we view as the province’s 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 said. “Debt and liquidity management policies and practices are (also) prudent and risk-averse.”
S&P also noted that the economic reopening and higher commodity prices should help Saskatchewan’s economic rebound gain traction through the remainder of this year.
Donna Harpauer, deputy premier and finance minister, celebrated the news that Saskatchewan’s credit rating remained strong.
“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,” she said. “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.”
This is the second year in a row that S&P has affirmed Saskatchewan’s AA credit rating.
