Newfoundland and Labrador’s credit rating has been upgraded from A (low) to A.

DBRS Morningstar attributes the change to what it calls the province’s “improving fiscal outlook.”

NL Hydro’s guaranteed long-term debt received the same upgrade.

DBRS Morningstar says the trend on all of the province’s long-term ratings has also changed from positive to stable.

Meanwhile, both NL Hydro’s and the province’s short-term debt rating is listed as R-1 (low) with stable trends.

DBRS Morningstar says the rating upgrades reflect the fiscal outlook, but also the removal of negative ratings related to Muskrat Falls, noting the project is now fully operational.

The credit rating agency says unlike the rest of Canada, real GDP growth in this province is expected to improve this year at 2.8 per cent, mainly due to increased mineral production and higher capital investment.