Moody’s Ratings has released its inaugural credit report for the Yukon and has assigned a rating of Aa1 with a stable outlook. Moody’s has assigned the same rating to the Yukon Development Corporation.
This rating is based on budgeting, a strong relationship with the federal government and an institutional framework that is transparent and has clearly defined responsibilities. This is the first year the government has received a rating from Moody’s, in addition to the credit rating issued by S&P Global Ratings.
The Government of Yukon sought a second credit rating to give the Yukon a stronger position in global bond markets. This second credit rating will provide the Government of Yukon with access to more competitive debt-financing, as two credit ratings are a regulatory requirement for some large institutional investors to purchase government bonds. A second rating also provides investors with more information through an added independent assessment.
The recent bond issuances from the government garnered significant interest from investors. Borrowing is one tool that allows the Government of Yukon to increase its fiscal flexibility as it prepares to address necessary investments in areas like health and energy infrastructure.
When assigning ratings to provinces and territories, Moody’s evaluates factors such as economic strength, institutional framework and governance, financial performance, leverage, liquidity and debt burden. An Aa1 credit rating indicates high credit quality and a low credit risk for the Yukon government to meet financial obligations.
A stable outlook reflects Moody’s expectation that the Yukon government will not exceed the territorial borrowing limit, will manage its debt burden relative to revenue and will have positive operating margins over the next two to three years.
This rating is an important recognition of the work we have done to put the Yukon on a more sustainable financial path. Our government is committed to making responsible decisions, bringing greater discipline to government spending and ensuring we can continue to invest in priorities that matter to Yukoners. As we continue on our path to balance, this strong credit rating will help ensure we have the financial flexibility to make critical investments in the energy and health care infrastructure that support Yukon communities and strengthen our territory’s future.
-
The Moody’s Report was published on September 17.
-
Moody’s Ratings has been an industry-leading credit rating agency for over 115 years and has nearly two decades of experience in northern jurisdictions.
-
A credit rating can be assigned to an organization or jurisdiction. It assesses the ability of a borrower to repay loans generally or with respect to a particular debt or financial obligation.
-
S&P Global Ratings issued the Government of Yukon an ‘AA Stable’ credit rating on July 13, 2026.
Tim Kucharuk
Press secretary, Cabinet Communications
867-335-2419
[email protected]
Eric Clement
Communications, Finance
867-393-6482
[email protected]