Moody’s reaffirms GNWT’s second-highest credit rating
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The GNWT’s Aa1 credit rating was re-affirmed on Monday, signaling confidence from the credit agency Moody’s.
The Aa1 rating, which is the second-highest rating available from Moody’s, has been held by the GNWT for 10 years.
“It has taken a lot of hard work by past assemblies to maintain the Aa1 rating and we intend to do our part to carry on the tradition,” said Robert C. McLeod, the minister of finance.
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When deciding a government’s credit rating, Moody’s judges the financial health of a government by indicating the risk posed to lenders.
For the 2016-2017 budget, the GNWT is predicting $1.8 billion in revenue, with a $119 million surplus.
The rating demonstrates Moody’s confidence in the territory’s spending and the management of the territory’s public debt.
Last year, the territory saw its borrowing limit increase from $800 million to $1.3 billion, but the GNWT’s borrowing capacity is projected to erode in the next five years as debt escalates.