S&P Global Ratings (S&P) has affirmed the Yukon’s "AA Stable" credit rating for 2026. The agency has also maintained a stable financial outlook for the territory.
In their report, S&P notes the expectation that the territory will continue making substantial capital investments in the coming years, some of which will be debt-financed. However, the debt burden is expected to remain manageable.
Over the last several years, the Yukon has underinvested in infrastructure needed to support a growing population and economy. The territory faces significant deficits in energy infrastructure and programming and remains pressed against a $1.2 billion debt cap imposed by Ottawa.
When assigning ratings to provinces and territories, S&P evaluates factors such as economic performance, financial and budgetary management, liquidity and debt burden. An AA Stable rating shows that a jurisdiction has a very strong capacity to meet its financial commitments. The report from S&P highlighted that the Government of Yukon’s commitment to a path to fiscal balance has weighed favourably in maintaining a stable outlook for the territory. The stable outlook reflects S&P’s expectation that the Yukon government’s cost control efforts will result in gradual improvements in its budgetary performance.
Beginning this year, the government will receive an additional credit rating from a second agency, Moody’s Ratings. The Yukon government has seen significant investor interest in recent bond issuances, and working with a second credit agency helps strengthen the territory’s position in global bond markets. Having two credit ratings is a regulatory requirement for larger institutional investors to purchase government bonds, and it provides investors with an additional, independent perspective on the Yukon’s credit. The first credit rating report from Moody’s is expected in fall 2026.
While the Yukon’s credit rating remains AA Stable, we are focused on our path to fiscal balance. This requires strong financial management, responsible investment in our most critical priorities like health, education and energy infrastructure, and working closely with the Government of Canada to strengthen the fiscal tools needed to help address major funding needs in the territory.
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S&P Global Ratings is a leading credit rating agency publishing global financial research, analysis and credit ratings. The S&P report was published on July 13, 2026.
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S&P Global Ratings also assigned "AA" issue-level ratings to the Government of Yukon’s two existing bond issuances and maintained its "AA" issue-level rating on Yukon Development Corporation’s senior unsecured debt, reflecting the agency’s assessment of the territory’s strong capacity to meet its debt obligations.
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A credit rating assesses the ability of a borrower to repay loans generally or with respect to a particular debt or financial obligation.
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Credit ratings can influence interest rates on an organization or jurisdiction’s borrowing. A higher credit rating generally results in more favourable interest rates and lower investment risk.
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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.
Matt Davidson
Director, Cabinet Communications
867-334-6637
[email protected]
Linnea Blum
Communications, Finance
867-332-2625
[email protected]