Credit Rating Remains Strong Following 2021-22 Budget
S&P Global Ratings has affirmed Saskatchewan's credit rating at AA with a stable outlook in a recent report.
"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," Deputy Premier and Finance Minister Donna Harpauer 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."
The S&P report states that "we expect 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."
The report adds that "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. Debt and liquidity management policies and practices are prudent and risk averse."
S&P also noted that economic reopening and higher commodity prices should help Saskatchewan's economic rebound gain traction through the remainder of 2021.