One of the bond rating agencies has held Newfoundland and Labrador’s credit rating steady after the provincial budget.

Dominion Bond Rating System (DBRS) confirmed the province’s credit rating Friday at A (low) with a stable trend.

“The ratings confirmation reflects DBRS’s view that the considerable progress being made to reduce budgetary deficits and slow debt growth are sufficient to maintain financial metrics within an acceptable range for the current ratings,” the agency said in a news release. “An uncertain outlook for global commodity prices and continued cost overruns at the Muskrat Falls hydroelectric project present downside risks.”

DBRS warned a negative rating action could result from a sustained deterioration in budgetary performance and material increase in debt beyond that considered acceptable for an “A”-range province. A positive rating action is unlikely in the current environment.