Released on May 28, 1996
Finance Minister Janice MacKinnon today welcomed the announcement byStandard and Poor's, a New York based credit rating agency, that
Saskatchewan has received a major credit upgrade for the first time in
20 years.
Earlier today, Standard and Poor's, one of the oldest, largest and most
influential credit rating agencies in the world, raised Saskatchewan's
credit rating from BBB+ to A-. The agency said in a media release that
the upgrade reflects "the recent impressive performance of the
economy", a sharp "decline in tax-supported debt" and "the government's
commitment to maintain fiscal balance."
"An independent out-of-province agency has confirmed why Saskatchewan
people are feeling increased hope and optimism," MacKinnon said.
"Standard and Poor's has recognized the work we have done together to
balance the budget and reduce debt. In turn, these efforts are
stimulating the economy and creating new jobs."
Standard and Poor's cites the province's diversifying economy, its
vibrant resource sector, and its growth in personal income. The agency
notes that the province is enjoying "exceptionally strong fiscal
performance."
Saskatchewan will now also pay less to borrow money. "The move into
the 'A' credit category will also save us about $1.75 million this year
in interest payments," MacKinnon said.
"This is good news for Saskatchewan people and their children, who can
look forward to the future with a sense of confidence and security.
They can look forward to a future of lower public debt, lower interest
payments, and all the possibilities that financial freedom brings.
They have security because our quality of life - our health, education
and social programs - will be there for them, their children and their
grandchildren," MacKinnon said.
"By the early 1990s, the province's fiscal situation had deteriorated
so badly that it was facing a borrowing and debt crisis. It was
practically impossible to borrow money in financial markets.
"Today we are in a dramatically different position with balanced
budgets and a long-term plan to reduce our debt load. The upgrade to
the 'A' category means that more investors from around the globe will
view Saskatchewan as a good place to invest."
MacKinnon noted that last year the Dominion Bond Rating Service
upgraded the province's credit rating from BBB to BBB(High). Today's
announcement is even more significant, since the last time the province
was upgraded into an entirely different credit bracket was 1976.
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For more information, contact:
Ron Podbielski
Director of Communications
Saskatchewan Finance
Regina
Phone: (306) 787-6578