Saskatchewan's AA (low) Credit Rating Affirmed by DBRS Morningstar

Released on July 18, 2023

In its recent release, DBRS Morningstar affirms the province's AA (low) credit rating and stable outlook.

Saskatchewan currently has the second highest credit rating among the provinces when all three major rating agencies (Moody's, DBRS Morningstar, and S&P) are considered. In June 2023 S&P Global Ratings gave Saskatchewan their highest credit rating amongst Canadian provinces. 

"Saskatchewan's economy continues to grow, and our province has a strong fiscal outlook. We will continue to invest in the programs, services, and capital projects to improve the lives of Saskatchewan people, while being financially responsible by paying down debt," Deputy Premier and Minister of Finance Donna Harpauer said. "DBRS Morningstar's report and affirmation is encouraging and speaks to our strengths."

In its release DBRS Morningstar states: "Prudent fiscal management and a recovery in resource revenues have resulted in a swift return to balance and a quickly declining debt-to-GDP ratio."

"Ongoing strength in resource production and exports, and business investment led by manufacturing and processing sectors should fuel the economic growth momentum."

Saskatchewan led all provinces in 2022 with 5.7 per cent GDP growth and the average of private sector forecasts has Saskatchewan experiencing real GDP growth of 1.7 per cent in 2023, second highest amongst provinces. 

Through the first four months of 2023, Saskatchewan posted the second highest growth rate in international goods exports at 23.1 per cent, the third highest growth rate in non-residential building construction at 18.8 per cent, and in wholesale trade at 42.6 per cent.

Saskatchewan's unemployment rate was 4.7 per cent in June, third lowest among provinces and below the national average of 5.4 per cent.  

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