Released on April 22, 2005
Saskatchewan has received its 12th credit rating upgrade since 1991, as Dominion Bond Rating Service (DBRS) today boosted Saskatchewan's long-term debt ranking from "A" to "A high".This is the third credit rating upgrade for the province under Premier Calvert's leadership.
The news comes less than a month after Saskatchewan posted its 12th consecutive balanced Budget.
"We're on the right financial path," Finance Minister Harry Van Mulligen said. "We're taking Saskatchewan in the right direction."
DBRS noted in its April 22nd news release that the upgrade reflects the significant improvement in the province's debt-to-GDP ratio, "supported by the Province's sound fiscal management, as highlighted by the solid cumulative budget surplus over the past five years and below average spending growth."
Saskatchewan enjoyed high credit ratings in the early 1980s, and then they began to slide dramatically. Since that time, Saskatchewan has been in a rebuilding process. The province is forecasting a debt-to-GDP ratio of 28 per cent this year, compared to a high of 69 per cent in 1993.
DBRS also noted spending challenges and risks for Saskatchewan, including the impacts of a continued US border closure to Canadian beef, as well as ongoing public sector negotiations.
"In our Centennial year, our future looks very bright. Our economy is performing well. On the employment front, March was our 12th straight month of job growth; in fact, we have the second lowest rate of unemployment in Canada," Van Mulligen said. "And now, a credit rating upgrade is the icing on our 100th birthday cake. This upgrade is independent, third-party validation that we're managing the public purse responsibly for Saskatchewan people."
The DBRS news release can be found at: www.dbrs.com under "Press Releases".
-30-
For More Information, Contact:
| Lorri Thacyk Finance Regina Phone: (306) 787-6605 |