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.