Alberta’s credit rating downgraded

EDMONTON, AB — Alberta’s credit rating has been downgraded by Moody’s Investors Service.

In a release sent out Tuesday, the investment service has downgraded the credit rating for the province from Aa2 positive to Aa1 negative.

The downgrade, according to a release from Moody’s, reflects the organization’s opinion of a

“structural weakness in the provincial economy that remains concentrated and dependent on non-renewable 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.”

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“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.”

Finance Minister Travis Toews, in a statement released Tuesday, says he was disappointed in the decision.

“This decision shows how previous governments’ fiscal mismanagement and inability to gain market access for Alberta’s energy continues to affect our province,” the statement reads.

“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.”

Toews statement adds Moody’s provided Alberta with a “stable outlook” on its current debt situation, adding “this is clear recognition that our plan to balance the budget has merit.”