Saskatoon

Sask. credit rating dropped to reflect low resource prices

Standard & Poor’s have lowered Saskatchewan's credit rating from AAA to AA+.

Standard & Poor’s downgrades province's credit rating from AAA to AA+

Saskatchewan's downgraded credit rating reflects the impact of persistently low prices of oil and potash. (David Stobbe/Reuters)

Saskatchewan's credit rating has dropped from AAA to AA+.

Standard and Poor's (S&P) Financial Services lowered the province's rating on Friday, reflecting the impact of persistently low natural resource prices — namely in oil and potash prices.

But according to the provincial government, Saskatchewan continues to have the second highest credit rating among provinces.  

"Despite continued negative GDP growth expected in 2016, in our view, the provincial economy is very strong," noted the S&P's report.

The report projected a real GDP growth of about 2.5 per cent in 2017.