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Canadian Press File Photo
By Shaun Penner
Credit Score Drop

Province’s credit rating downgraded amid resource market struggles

Dec 4, 2019 | 8:22 AM

The Alberta government’s credit rating has taken another hit.

Moody’s Investors Service has downgraded the province’s rating to Aa2 stable from Aa1 negative.

The rating service cites weakness in the provincial economy that remains concentrated and dependent on non-renewable resources, mainly oil.

“I was disappointed to hear that Moody’s has changed Alberta’s credit rating to Aa2 (stable) from Aa1 (negative) citing lack of pipeline capacity and inherited deficits,” said GP-Wapiti MLA and Finance Minister Travis Toews.

Moody’s says reliance on resource revenue causes volatility in financial performance and remains pressured by a lack of sufficient pipeline capacity to transport oil efficiently.

Toews feels that the volatility is a by-product of previous governments.

“This decision shows how previous governments’ fiscal mismanagement and inability to gain market access for Alberta’s energy continues to affect our province,” said Toews. “Over the past four years, the previous government drove Alberta into a fiscal crisis with policies that weakened growth and business competitiveness. That’s why balancing Alberta’s budget, growing the economy and creating jobs are our top priorities.”

Moody’s also says continued deficits will lead to the province’s debt burden stabilizing at higher levels.

The UCP have stated since their campaign back in the spring that they plan to bring the provincial budget to balance by 2023.

“I stand behind our government’s plan and I am confident it is the right path forward for Alberta and for all Albertans.”

-With files from the Canadian Press

by Shaun Penner