Released on November 17, 2006
Saskatchewan has received its 16th credit rating upgrade since 1995 today, as Dominion Bond Rating Service (DBRS) boosted its long-term rating for the province from A (high) to AA (low).This comes only three days after Moody's Investor Service upgraded the Province's credit rating from Aa2 to Aa1. The DBRS ranking marks the sixth credit rating upgrade for the province under Premier Calvert's leadership.
"This is further proof that our government continues on a sound financial path," Finance Minister Andrew Thomson said. "DBRS has acknowledged this upgrade is a result of positive fiscal outcomes in recent years, improvements in debt ratios, tax cuts we've introduced, as well as our decision to cash fund the Fiscal Stabilization Fund."
DBRS noted in its November 17 news release that the upgrade reflects "continued progress at reducing the debt-to-GDP ratio from a high of over 60% in the early 1990s to a projected 27.0% in 2006-07 and the Province's track record of sound fiscal management, as highlighted by the improved fiscal outlook for 2006-07, the solid cumulative budget surplus over the past five years and relatively slow spending growth. The Province's increasing tax competitiveness is also supportive of the improved credit profile."
The DBRS news release goes on to say "DBRS-adjusted debt is expected to rise very modestly from budget projections, largely due to the decision to fund the FSF with cash. DBRS views this decision as a positive as it will reduce future swings in direct government debt. . . DBRS expects Saskatchewan's credit profile to remain solid over the next few years."
"We are being recognized not only for our financial management, but also the numerous tax cuts we've provided to Saskatchewan people and businesses, to keep more money in their pockets and stimulate jobs and investment – measures to make Saskatchewan an even better place to live, work and raise a family," Thomson said.
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.
"Another credit rating upgrade provides independent, third-party validation that we're managing the public purse responsibly for Saskatchewan people," Thomson said.
The DBRS news release can be found on the DBRS homepage at www.DBRS.com under "Press Releases".
The attached backgrounder offers more details on Saskatchewan's credit rating history.
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For More Information, Contact:
| Lorri Thacyk Finance Regina Phone: 306-787-6605 Email: lthacyk@finance.gov.sk.ca |