Fitch upgrades Saskatchewan

Fitch Ratings said upgraded the Province of Saskatchewan's long-term obligations to AA from AA-, long-term local-currency obligations to AA from AA- and senior unsecured obligations to AA from AA-.

Its short-term obligations were affirmed at F1+.

The outlook is stable.

The upgrade is based on the province's continued progress in reducing its outstanding debt and accumulated deficit and its demonstrated commitment to maintaining fiscal balance despite exposure to volatile economic and revenue trends, Fitch said.

The province's revenues are very diverse, although those derived from natural resource extraction are cyclical, the agency said.

Economic growth continues in both the key resource extraction sectors and in the broader economy, Fitch said.

Risks include global resource volatility and the province's dependence on export markets, the agency added.

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