YELLOWKNIFE (October 23, 2012) – The Government of the Northwest Territories’ Aa1 credit rating has been confirmed by Moody’s Investors Service. A high investment grade credit rating provides assurance that the GNWT’s fiscal plans are sound.

The credit analysis was published October 18th following Moody’s annual review of the GNWT’s fiscal plans, outlook, and borrowing activity. While economic growth in the north has been uneven due to the volatility of the global economy, the credit risk is mitigated by the territory’s low debt burden.

“We have adopted fiscal policies that have supported the economy by maintaining spending and by investing significantly in infrastructure, but remain committed to our goal of long-term fiscal sustainability,” said Michael Miltenberger, Minister of Finance.

Moody’s credit rating recognizes the GNWT’s ongoing good financial management in uncertain economic times, based on a well-developed fiscal framework and Fiscal Responsibility Policy. The analysis noted the potential for higher resource revenues and greater fiscal flexibility in the future as a result of devolution and expects the GNWT’s debt burden to remain stable under the new federal borrowing limit. A territorial economy that generates high employment rates and GDP per capita contributed to the GNWT’s credit rating.

The GNWT’s rating is on par with Manitoba and Saskatchewan. The highest possible credit rating issued by Moody’s is Aaa, one level above the GNWT’s. The NWT’s debt burden is low when compared to that of most Canadian regional governments.

The GNWT has retained an Aa1 credit rating since 2008-09. A high credit rating allows the GNWT to build a strong, sustainable future for our Territory by making strategic infrastructure investments that will increase northern capacity, strengthen and diversify the economy, and increase employment opportunities where they are most needed.  

For more information, contact:

Brenda Norris
Media Liaison
Office of the Premier/Cabinet
Government of the Northwest Territories
Phone: (867) 669-2302