A bond rating agency has upgraded its credit outlook for Manitoba from stable to positive.

The government says S&P Global Ratings cited the province's better-than-expected financial results this year for the upgrade.

“The positive outlook reflects the increasing possibility that, in the next two years, the recently re-elected government will continue to make progress toward achieving fiscal balance, although slowing global economic growth could challenge its ability to sustain this positive fiscal momentum,” the report says.

But S&P noted that Manitoba's debt remains the highest of any province.

Such credit ratings can affect how much money the government must spend to service its debt. 

“While we have made significant progress over the past four years, there is still important work that remains to be done to correct the course and return the budget to balance,” says Premier Brian Pallister, in a press release.