Despite challenges like economic uncertainty due to the COVID-19 pandemic, Saskatchewan continues to maintain its AAA credit rating from Moody’s Investors.
“Moody’s has affirmed Saskatchewan’s triple-A credit rating despite the significant fiscal and economic challenges posed by the global COVID-19 pandemic,” Finance Minister Donna Harpauer said in a press release. “With this affirmation, Saskatchewan continues to have the second-highest credit rating among Canadian provinces when all three major rating agencies are considered.”
In a release, Moody’s stated the province has “ongoing credit strengths including a strong institutional framework and strong debt and treasury management.” The Moody’s release also stated that “despite the rise in debt burden, Saskatchewan will continue to have the second-lowest debt burden among Canadian provinces.
Although Moody’s did not place Saskatchewan under review for downgrade, it did change its rating outlook to negative. This is attributed to concerns about weakening oil prices and continuing uncertainty related to the pandemic.
The outlook could be stabilized by a faster-than-expected economic recovery, or improved resource prices.
“We continue to have confidence in our province’s economy and in our government’s fiscal approach during the pandemic,” added Harpauer. “Fiscally, we are moving in the right direction, and Saskatchewan’s economy continues to reopen and recover from the pandemic. Our province has the lowest unemployment rate in Canada, according to the most recent labour force survey, and several other economic indicators, including growth in retail sales, wholesale trade and exports, show that our recovery is on track.”
Saskatchewan’s AA rating from Standard & Poor Global Ratings (S&P) was confirmed back in June.
