Moody's Investors Service has adjusted Alberta's credit rating to Aa2 stable from Aa1 negative.
It's a downgrade to be sure, however, the long-term outlook for Alberta's finances are stabilizing. It seems so long ago Alberta had a triple a credit rating.
The Moody's report listed the reasons for the most recent down rating of the provinces credit - the seventh in 5 years:
“The downgrade of Alberta's BCA to aa3 and long-term debt ratings to Aa2 reflects Moody's opinion of a structural weakness in the provincial economy that remains concentrated and dependent on nonrenewable resources — primarily oil — which causes volatility in financial performance, and remains pressured by a lack of sufficient pipeline capacity to transport oil efficiently with no near-term expectation of a significant rebound in oil-related investments. The downgrade also reflects that continued fiscal pressures, as indicated by continued material consolidated deficits at least until 2022/23, will lead to the province's debt burden stabilizing at a higher level than previously forecasted.”
To paraphrase: Our problems are lack of pipelines, debt, and public sector spending.
Today I'll tell you exactly who is responsible for these problems and it isn't all Notley's fault, and what Premier Jason Kenny must do to get his fiscal house in order.
Alberta's budget needs a machete and not a pair of manicure scissors.