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S&P downgrades Alberta credit rating

Credit rating drops one notch from AAA to AA+ amid rising debt burden


 
Alberta Finance Minister Joe Ceci speaks during a press conference prior to the official release of the 2015 budget in Edmonton Alta, on Tuesday October 27, 2015. (TOPHER SEGUIN/CP)

Alberta Finance Minister Joe Ceci speaks during a press conference prior to the official release of the 2015 budget in Edmonton Alta, on Tuesday October 27, 2015. (TOPHER SEGUIN/CP)

CALGARY – Standard and Poor’s has downgraded Alberta’s credit rating on concerns of weak budgetary performances and .

The credit rating agency dropped the province’s rating one notch from AAA to AA+ while still stating it expects the province’s credit liquidity to be exceptional in the next two years.

S&P said the downgrade is based on “Alberta’s projected oil price-driven weak budgetary performances in the next two years; moderate, but rapidly rising, tax-supported debt burden; and now-average economic prospects.”

The province’s long-term issuer credit and senior unsecured debt were downgraded to AA+, as was the senior unsecured debt rating on the Alberta Capital Finance Authority.

S&P said the stable outlook of the AA+ credit rating reflects its expectations that the province will continue to have exceptional liquidity in the next two years, the real GDP will grow in 2016 and 2017, and the debt burden will remain modest.

Alberta Finance Minister Joe Ceci has scheduled a conference call on the downgrade this afternoon.

 


 
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S&P downgrades Alberta credit rating

    • Komarade E1 I don’t know what Province you live in But if you are in one that gets Equalization Payments I don’t think you should Be Laughing…….

      • Comrade Joe, My province has an actual economy.

        Too bad about the oil, LOL

        • Only a sociopath has no empathy for those who are losing their livelihoods and homes. You might believe it is the very rich who are getting a kick in the pants but it isn’t. It is the middle and lower socio-economic classes. Sadly we are stuck with a government that is so naïve and ill-prepared that the energy minister recommended out of work Albertans go to BC to work until things turn around. Perhaps she will recommend they all go east to Ontario and go on welfare there until things turn around because as you point out, your economy is doing so well.

  1. Jofredm,
    On Aug. 31, 2014 Macleans published an article entitled “Alberta and Saskatchewan both project deficits”
    And here is the comment from this lady:
    “Really?? Wow, who could have seen THAT coming? LOL”
    This lady has been laughing a lot at other peoples’ miseries and has been that way for quite some time. Besides her nonstop laughs, for the sake of an enhanced celebration of miseries, she acts surprised too every time the same news get repeated. Nobody knows since when has she been like this or if she ever tried to cease and desist from such despicable behavior.
    Perhaps these are symptoms that warrant a stay at a metal institution, perhaps not. Perhaps, just ignoring her might the best medicine for her nonstop laughter. But one thing is for sure. If you look surprised by her comments or if you try to respond to her, nobody will try to take you seriously as well. This is my genuine advice to you.

  2. Mighty clear that the NDP Knotely government really has zero economic sense. If their finance political types analysed the markets they would have known that black clouds were on the horizon. Instead, these NDP types simply ignored the obvious, and forged ahead with tax increases along with measures that harm the Alberta economy. Nothing new, that is the way with any NDP government.

    The NDP are total losers in every Canadian Province.

  3. NDP to table largest deficit budget in Alberta history as provincial revenues plummet with oil prices. So is now really the time to implement a tax on fossil fuels? I suspect next will finally be an Alberta PST, which like Ontario they can add onto everything like home heating fuels, gasoline etc. and bring in billions.

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