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
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.