Saskatchewan’s economy deemed ‘resilient’ by credit ratings agency

Saskatchewan businesses say the 2026 budget offers stability, with tax incentives and a low small business rate.

One of the world’s largest credit ratings agencies says Saskatchewan is equipped to weather the current global economic uncertainty thanks to its strong economy.

In a report published late last week, Morningstar DBRS outlined that although the province’s large capital plan is driving up its net debt-to-GDP, Saskatchewan’s debt burden remains manageable thanks to its “resilient” economy in the face of trade uncertainty and slowing population growth.

The agency noted the province’s economic outlook will depend on an upcoming review of the Canada, U.S., and Mexico trade agreement, which has largely protected the province’s goods from tariff issues.

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Resource prices like oil and potash were also considered a point of volatility, according to the report. Regardless, Saskatchewan maintains a low AA rating with a “stable trend.”

Released on March 18, Saskatchewan’s 2026-27 budget included a forecasted $819 million deficit with a gradual return to balance in 2030-2031.

Net debt is forecasted to rise by $5.2 billion to a total of $43.5 billion, a stiff increase compared to recent years.

• Saskatchewan reports $819M deficit for 2026-27

The report noted the province’s spending priorities consisted of continuing tax incentives and supports in addition to a five per cent bump in health care funding as part of the province’s “Patients First” health care plan.

MorningStar DBRS is an internationally recognized credit ratings agency headquartered in Toronto. Originally DBRS, the Canadian firm was acquired by MorningStar in 2019 for a reported $669 million.

With files from Cole Davenport