YELLOWKNIFE (JULY 24, 2018) - The Government of the Northwest Territories (GNWT) received confirmation of its Aa1 credit rating with a stable outlook from Moody’s Investor Services on July 18, 2018. The Aa1 rating is the second-highest rating available from Moody’s.
This external credit rating supports the importance of the GNWT’s approach to fiscal management, especially within a challenging fiscal environment. Despite the fiscal pressures outlined in Budget 2018, including two years of declining revenues, the GNWT has carefully managed its expenditures to continue to provide critical programs and services and make strategic infrastructure investments. The GNWT’s adherence to the Fiscal Responsibility Policy has been fundamental in creating fiscal sustainability and supporting this favorable credit rating for twelve years.
A high credit rating supports current borrowing at a low interest rate and helps to ensure affordable borrowing costs for potential future strategic investments such as the Mackenzie Valley Highway, Tłı̨chǫ All-Season Road, Seasonal Overland Road, or the Taltson Hydro Expansion Project.
“This credit rating, and the related analysis, recognizes our challenges of limited revenue growth and on-going expenditure pressures. It supports that our overall fiscal strategy is prudent and a responsible course of action and that our ongoing diligence will ensure financial sustainability.”
- Robert C. McLeod, Minister of Finance
- Moody’s Investors Service first gave the NWT a credit rating of Aa3 in February 2005.
- The upgrade to Aa1 was in 2006.
- The highest possible credit rating issued by Moody’s is Aaa, one level above the GNWT’s.
Department of Finance, Shared Corporate Services
Government of the Northwest Territories
(867) 767-9151 ext. 14032