Released on May 24, 2011
Saskatchewan Receives AAA Credit Rating for First Time Ever
Standard & Poor's has upgraded Saskatchewan's credit rating to the highest level possible. For the first time in Saskatchewan's history, the credit rating is at the AAA level.
The agency says: "The upgrade was warranted because of low and declining debt burden, rebounding economy, strong liquidity and moderate support from the federal government."
The news was welcomed by Deputy Premier and Finance Minister Ken Krawetz, who said the upgrade confirms the province's healthy fiscal position outlined in the recent "Saskatchewan Advantage" budget.
"Saskatchewan is moving in the right direction," Krawetz said. "While other provinces and other countries are running huge deficits and adding billions of dollars of debt, Saskatchewan's budget is balanced and we are paying down our debt."
Krawetz said Saskatchewan is the only province in the country to have received a credit rating upgrade this year.
"This demonstrates that the Saskatchewan Advantage is recognized well beyond our own borders," Krawetz said. "Our economy is strong, the province's finances are strong and Saskatchewan is moving forward."
Standard & Poor's concluded: "The province's operating after capital results will continue to improve with the strengthening economy and operating revenue growth and that liquidity will remain strong."
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. The upgrade should result in lower borrowing costs in the future.
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For more information, contact:
Kathryn Newton
Finance
Regina
Phone: 306-787-8109
Email: kathryn.newton@gov.sk.ca