Press Release - September 10th, 2009

R(16)263

Credit Rating Confirmed for GNWT

YELLOWKNIFE (September 10) — Minister of Finance J Michael Miltenberger says a high investment grade credit rating by Moody's Investors Service provides assurance that the Government of the Northwest Territories' (GNWT) fiscal plans are sound.

Moody's Investors Service yesterday published its credit opinion on the GNWT summarizing its rationale for the GNWT's Aa1 credit rating. The credit opinion was published following Moody's annual review of the GNWT's fiscal plans and outlook - and in particular the government's borrowing activity.

According to Moody's, the rating reflects: "prudent fiscal policies that have, over the past several years, limited debt accumulation. A well-developed fiscal framework (including a Fiscal Responsibility Policy which guides the NWT's fiscal policies and use of debt) should help to ensure that the debt burden remains low and affordable."

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

While upheavals in the global economy over the past year have put pressure on governments to respond, the GNWT has been well positioned, fiscally, to face this uncertainty. "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.

Moody's also noted the GNWT's relatively low level of debt: "Over the past four fiscal years, the NWT did not have short-term debt outstanding at year-end. At March 31, 2008 the only net debt on the government's balance sheet consisted of capital leases, loans due from the NWT Housing Corporation to the Canada Mortgage and Housing Corporation, debt related to the immigrant investor program as well as a liability respecting the Deh Cho Bridge, which was financed through a public-private partnership."

The GNWT's rating is on par with that of Ontario and Saskatchewan. The highest possible credit rating issued by Moody's is Aaa, one level above the GNWT's.

For more information, contact:

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