The Honourable Siobhan Coady, Minister of Finance and President of Treasury Board, today announced that Moody’s, S&P Global and DBRS Morningstar have confirmed a stable outlook for the provincial government’s credit rating. These firms provide an independent assessment of the credit worthiness of the Government of Newfoundland and Labrador, typically providing a credit rating for the short-term debt, long-term debt, and an outlook for the long-term debt rating.
Moody’s has rated the province’s long-term debt at A1 (stable). The outlook was upgraded from negative to stable in July 2022 due to the expectation of a stabilizing debt burden and an assessment of reduced risk regarding the Muskrat Falls electricity generation project.
S&P Global has rated the province’s long-term debt at A and short-term debt at A-1, indicating a strong capacity to meet financial commitments. The outlook was upgraded from negative to stable in July 2022 due to confidence that the province will maintain fiscal gains precipitated by the run-up in Brent crude oil prices and the expectation that the province will continue to demonstrate prudent financial management.
DBRS Morningstar confirmed the province’s long-term debt at A (low) and short-term debt at R-1 (low) in September 2021. In its most recent review (August 2022), DBRS Morningstar noted that the province continues to show an improving fiscal outlook relative to prior expectations, supported by stronger commodity prices and ongoing expenditure restraint.
Credit ratings from all three agencies indicate that the debt of the Government of Newfoundland and Labrador continues to be regarded as investment grade.
For more information on the province’s investor relations, visit here.
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“All three of the province’s credit rating agencies have now moved their outlook from negative to stable. This is welcome news for Newfoundland and Labrador. It shows the confidence they have that the province’s fiscal situation is starting to improve. With the net debt anticipated to reach $17.1 billion in 2022-23, and projected deficit of $351 million, there is still much work to be done. We are addressing our financial challenges and ensuring the cost of servicing our debt is lower and more manageable.”
Honourable Siobhan Coady
Deputy Premier, Minister of Finance and President of Treasury Board
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Investor Relations Newfoundland and Labrador
Media contact
Diana Quinton
Finance
709-729-2477, 697-1566
dianaquinton@gov.nl.ca