Sask. credit rating cut

Photo: Ryan Wunsch

Weak commodity prices and higher government capital spending have prompted Standard and Poor's to downgrade Saskatchewan's credit rating.

The agency says it has lowered the rating to double-A from double-A plus.

Standard and Poor's says the downgrade reflects Saskatchewan's weakened budget performance and growing debt thanks to low oil, natural gas and potash prices.

The agency says despite some tax reforms and cuts in the government's recent budget, the province's position is now weaker than it was last year.

It also cites higher spending plans under the Saskatchewan Builds Capital Program.

On the upside, Standard and Poor's says the outlook for the province is stable and forecasts the economy will record modest growth in the next two years.