Released on January 19, 2011
Saskatchewan the Only Province to Receive Credit Rating Upgrade
Deputy Premier and Finance Minister Ken Krawetz welcomes the news that Standard & Poor's has improved its credit rating outlook of AA+ for the Province of Saskatchewan from stable to positive.
"The affirmation reflects our favourable view of the province's low and stable debt burden, economic performance throughout the recession, strong liquidity and moderate support from the federal government," Standard & Poor's said.
"So far this year, Saskatchewan is the only province to receive an improved credit rating," Krawetz said. "Considering that other provinces are struggling with deficits, it is clear that Saskatchewan's sound financial management is definitely paying off."
In its report, Standard & Poor's said that given the global recession, the province's economy fared reasonably well. The report points to key factors such as Saskatchewan's overall debt, GDP growth, employment statistics and population growth.
"This good news shows Saskatchewan is on the right track. It indicates that if we continue to maintain control over spending and debt, then a move to Triple A status is possible in the future," Krawetz said.
The positive outlook reflects Standard & Poor's expectation that the province's tax-supported debt burden will remain low and stable in the next two years and that GDP growth will be positive for 2010 and beyond. Combined with other factors like solid operating revenue growth, it could lead to a further upgrade, Standard & Poor's suggested.
Ratings by firms such as Standard & Poor's, a major credit rating agency in the international financial community, influence the interest rates that a government pays on borrowed money.
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For more information, contact:
Randy Burton
Finance
Regina
Phone: 306-787-6578
Email: randy.burton@gov.sk.ca