On last night's episode of The Gunn Show, Kris Sims of the Canadian Taxpayers Federation joined the show to discuss the implications of Alberta's improving credit rating.

On Monday, a large international credit rating agency named Moody's changed Alberta's credit outlook from 'stable' to 'positive.'

Moody's pointed to Alberta's balanced budget, debt repayment legislation and spending constraints as reasoning behind the change.

NEWS RELEASE:

Alberta is getting a positive assessment from credit rating agencies because the government has a balanced budget & is restraining spending

Moody’s changed Alberta’s credit rating outlook to positive, up from stable with a AA2 rating

📃⬇️https://t.co/whxzwRR1df pic.twitter.com/ArMwNdMoA5

— Kris Sims (@kris_sims) July 23, 2024

“The positive outlook reflects our view that if Alberta adheres to the governance controls as per its fiscal framework introduced in 2023, its debt and liquidity levels could be stronger than we currently project,” read the report.

Speaking about the credit rating change, Sims said, "It determines how much we pay on interest, so this is important."

She explained that this essentially means, "Hey everybody, you can lend these people money, you can invest in this province because it's a good bet, it's a good investment."

"And that also allows us then to borrow money at a lower interest rate. Who pays the interest on our provincial debt? You and me Sheila, and all of your listeners, all of your viewers here in the province of Alberta."