Released on July 29, 2004
The outlook on Saskatchewan's long-term debt has been improved to A-positive from A-stable by Dominion Bond Rating Service (DBRS). This change could set the stage for another credit rating upgrade for the province in the future, according to DBRS."This comes on the heels of our credit rating upgrade to double A-status from Standard and Poor's last month," Finance Minister Harry Van Mulligen said. "The DBRS improved outlook is yet another vote of confidence in the government's budgetary approach, and is good news for Saskatchewan."
DBRS notes that the positive outlook reflects improvement in the debt-to-GDP ratio despite difficult economic conditions in the province in recent years, a declining interest burden and expectations of improved annual results over the next four years.
DBRS also cautions that the Province is dealing with issues that can negatively affect its financial picture, including volatile energy revenues and equalization payments, as well as ongoing spending pressures, particularly in health care.
"We are very pleased with this improvement. Including last month's boost to double-A status, we have had 11 credit rating upgrades since 1991. This is quite an achievement, particularly in light of some of the difficult conditions this province has faced and overcome," Van Mulligen said. "The economy is performing well, our fiscal management is sound, and the credit rating agencies are recognizing that."
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For More Information, Contact:
| Debbie Clark Finance Regina Phone: (306) 787-6605 |