Released on July 15, 2005
Saskatchewan has received its 13th credit rating upgrade since 1995 as Moody's Investors Service boosted Saskatchewan's long-term debt ranking from Aa3 to Aa2.This is the fourth credit rating upgrade for the province under Premier Calvert's leadership after Saskatchewan posted its 12th consecutive balanced budget this year.
"It is evident that this government has pointed Saskatchewan in the right direction and we are on a solid financial path," Finance Minister Harry Van Mulligen said. "Moody's has acknowledged this upgrade is a result of positive fiscal outcomes in recent years and improvements in debt ratios."
Moody's noted in its July 14th news release that the upgrade reflects the significant decline in the province's debt-to-GDP ratio from 24.9 per cent in March 2002 to 19.9 per cent in March 2005.
Saskatchewan enjoyed high credit ratings in the early 1980s, and then these began to slide dramatically. Since that time, Saskatchewan has been in a rebuilding process.
Moody's commended the Saskatchewan government for its "strong fiscal policy framework in place for over a decade, which includes the use of conservative revenue assumptions, tight expenditure controls and a fiscal stabilization fund."
The release continues to address that "Saskatchewan will likely continue to face budgetary pressures, but Moody's expects fiscal discipline will guide decision-making, resulting in further balanced outcomes."
"Saskatchewan's economy has been performing well during our Centennial year and we have a lot to celebrate," Van Mulligen said. "On the employment front, June was our 15th straight month of job growth, giving us the second lowest rate of unemployment in Canada.
"Another credit rating upgrade provides independent, third-party validation that we're managing the public purse responsibly for Saskatchewan people," Van Mulligen concluded.
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| Vanessa Gooliaff Beaupre Finance Regina Phone: (306) 787-8109 |