Saskatchewan credit rating ‘strong’ despite pandemic

Saskatchewan is sitting with a strong credit rating, despite a global pandemic and a recession.

According to a recent report by S&P Global Ratings, Saskatchewan is sitting at a AA credit rating with a stable outlook.

The investment-grade scale positions a rating of AAA or AA as high credit quality, compared to an A or BBB rating, which is considered a medium credit quality.

In a Wednesday release, deputy premier and finance minister Donna Harpauer said the province is pleased that major rating agencies continue to have confidence in the government’s fiscal and budgetary approach.

“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,” Harpauer said,

“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 S&P report stated.

The report states that the province’s strong financial management is the support behind the province’s creditworthiness.

“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,” the report read.

Economic reopening and higher commodity prices should help Saskatchewan’s economic rebound through the rest of the year.