The Yukon retains ‘AA Stable’ credit rating from S&P Global Ratings for 2021

S&P Global Ratings (S&P) has affirmed the Yukon’s strong financial position with an AA Stable credit rating and a stable outlook.

In assigning Canadian provincial and territorial ratings, S&P considers demographic trends, private sector economic performance and government finances. The stable outlook for the Yukon reflects S&P’s expectation that revenue and expenditure impacts attributed to the COVID-19 pandemic will be largely temporary and that they expect the Yukon to maintain relatively stable fiscal performance. The credit rating agency also cites positive liquidity – or the ability to access cash – and a low debt burden as encouraging attributes in its rating.

This independent assessment shows that continued activity in the mining sector will offset weaker tourism growth due to COVID-19, leading to positive economic growth in the near future. S&P also highlights the territory’s financial management practices and its stable, well-balanced and supportive relationship with the federal government.

S&P expects the Yukon’s current government to remain committed to fiscal discipline throughout its mandate and that the impact of COVID-19 on budgeting will be less severe than in other Canadian jurisdictions.

This rating assessment is welcome news as we continue to work to support Yukoners and local businesses impacted by COVID-19. It shows that the Yukon’s financial management is sound and stable, which places us in a strong position to continue to navigate and recover from the pandemic.

Premier and Minister of Finance Sandy Silver

Quick facts 
  • S&P Global Ratings is a leading credit rating agency publishing global financial research, analysis and credit ratings.

  • S&P also maintained its AA issue-level rating on Yukon Development Corporation’s senior unsecured debt.

  • 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.

  • The report was published on Thursday, July 29, 2021.

Contact 

Renée Francoeur
Cabinet Communications
867-334-9194
renee.francoeur@yukon.ca

Eric Clement
Communications, Finance
867-393-6482
eric.clement@yukon.ca

News release #: 
21-268