REGINA - Morningstar DBRS has released the credit ratings for Saskatchewan and those are confirmed to be at AA (low) and R-1 (middle).
In a news release, DBRS Limited (Morningstar DBRS) stated that the province’s Issuer Rating, Long-Term Debt credit rating, and Short-Term Debt credit rating is AA (low), AA (low), and R-1 (middle), respectively.
They also state that all trends are Stable and that the province “remains well positioned to withstand the deterioration in its financial outlook and any potential weakness in the macroeconomic backdrop and/or commodity price volatility without materially eroding its credit profile.”
According to their report, key credit rating considerations include last year’s deficit of $248.9 million, compared wto a surplus of $182.2 million in the prior fiscal year. A modest surplus of $12 million is projected in 2025-26 but Morningstar DBRS notes the high capital spending translates into a adjusted shortfall of $1 billion, or 0.9 per cent of GDP.
Morningstar DBRS says it believes the Province “has flexibility within its current credit ratings to withstand a period of deficits and higher debt.
“Saskatchewan's debt has risen in recent years to fund the Province's capital plan and to offset deficits. However, we anticipate it will remain manageable for the current credit ratings provided the economy continues to grow.”
They estimate the adjusted debt-to-GDP ratio should average around 24.3 per cent annually between 2026 and 2029.
They also point to steady population growth, favourable labour market conditions, anticipated new public and business investment, and efforts to diversify exports to new markets as lending stability to the economic outlook. “However, sustained trade uncertainty, weaker commodity prices, and unfavourable crop conditions could present risks,” they stated.
