Morningstar DBRS says Saskatchewan’s 2025 Budget is a return to balance with a dose of downside risks.

The Province of Saskatchewan, which Morning Star DBRS has rated as AA (low) with a Stable trend, presented its 2025-26 budget last week.

It says while the latest budget points to a return to balance in 2025-26, potential tariff impacts could present fiscal challenges. The debt-to-GDP ratio is rising but remains below the recent pandemic peak.

The credit rating agency says economic momentum will remain supported by population growth and business investment, though trade uncertainty could bring it down. With the worst-case scenario, which accounts for tariff impacts, suggesting lost revenue and a GDP decline.