Moody’s Investors Services has changed the outlook on Saskatchewan’s credit rating to Aa1 (positive) from Aa1 (stable).

“The change in the outlook for Saskatchewan’s Aa1 rating reflects the ongoing improvement in the province’s financial position that is expected to continue,” the agency said.

The news was welcomed by Deputy Premier and Finance Minister Ken Krawetz who said that the change confirms the province’s improving fiscal and financial position.

“Saskatchewan continues to move in the right direction,” Krawetz said. “While the volatile world economy provides challenges, Saskatchewan continues to outperform other provinces and countries that are running deficits and adding billions of dollars of debt. Last year the province paid down government debt by $327.6 million.

“This change in outlook is further independent confirmation of the strength of Saskatchewan’s economy. This is particularly noteworthy when many credit ratings are being downgraded worldwide.”

Ratings by firms such as Moody’s Investors Services, a major credit rating agency in the international financial community, influence the cost that a government pays on borrowed funds.