YELLOWKNIFE (August 13, 2014) – Minister of Finance J. Michael Miltenberger is pleased with Moody’s Investors Service’s endorsement of the Government of the Northwest Territories’ (GNWT) sound fiscal plans through the continuation of their Aa1 credit rating for the GNWT announced Monday.

Moody’s Investors Service yesterday published its credit opinion the GNWT summarizing its rationale for the GNWT’s Aa1 / Stable Outlook credit rating. The credit opinion summarizes Moody’s assessment of the GNWT’s fiscal plans and outlook – and in particular the government’s borrowing activity and the impact of devolution.

Moody’s states that: “The NWT adheres to prudent fiscal policy that aims to maintain the structural alignment of revenues and expenses while making necessary expenses in priority areas such as health, social services and infrastructure. The NWT’s fiscal plan is guided by a Fiscal Responsibility Policy that includes guidelines with respect to the types of activities for which debt can be issued as well as limits on total debt and debt servicing costs to ensure affordability. The NWT, overall, displays strong governance and management factors. Adherence to the Fiscal Responsibility Policy helps to ensure continued fiscal discipline as the territorial government addresses its identified infrastructure needs.”

Moody’s high investment grade rating also reflects the territorial economy, which, while narrowly based and focused on resource development, generates high employment rates and GDP per capita.

While economic growth has been volatile due to the structure of the 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,” Minister Miltenberger said.

The GNWT’s rating is on par with that of 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.

For more information, contact:

Shaun Dean
Press Secretary
Office of the Premier/Cabinet
Government of the Northwest Territories
Phone: (867) 669-2304