Alberta’s credit rating cut after confirming $10.3B deficit, $42B debt

EDMONTON — Alberta has been hit with another credit downgrade one day after it confirmed it remains on track for a $10.3-billion budget deficit this year.

The credit rating agency DBRS say it has downgraded Alberta’s long-term debt rating to AA from AA (high) and has adjusted or maintained other ratings indicators on a negative trend.

The agency said the downgrade reflects the high operating deficits and Alberta’s rapidly accumulating debt, which is pegged to surpass $42 billion by the spring.

It’s one of a number of credit downgrades or warnings that have resulted from the province’s fiscal direction under Premier Rachel Notley’s NDP since 2015.

Although the economy has been hammered by low oil prices, Notley’s government says it makes sense in the short term to take on debt to catch up on long-delayed infrastructure projects.

Finance Minister Joe Ceci, responding to the downgrade, says Alberta still has the strongest debt-to-GDP ratio among provinces and the province’s credit rating remains among the highest in Canada.

“The fiscal update released yesterday shows that Alberta’s economy is growing faster than forecast, the deficit is coming down, and significant cost savings are being realized,” Ceci said in a statement.

“The government will continue to take a steady and responsible approach that avoids extreme and risky cuts that would hurt families, cost jobs and damage our recovery.”

Just Posted

Coat, cash donations accepted on the side of the road in Red Deer

Fifth annual Coats for Kids and CACPC Charity Checkstop held Saturday afternoon on Taylor Drive

UPDATE: Red Deer RCMP locate missing 64-year-old woman

Red Deer RCMP have located a 64-year-old woman, who was reported missing,… Continue reading

Not a political question: Thunberg calls for climate action in Alberta

EDMONTON — Teen climate activist Greta Thunberg marched into the middle of… Continue reading

Alleged sex assault victim details struggles in proposed suit against Toronto school

TORONTO — A former student at an all-boys Catholic school in Toronto… Continue reading

WATCH: Red Deer Citizens on Patrol monitoring downtown with new program

Volunteers will patrol downtown Red Deer to help keep the city safe.… Continue reading

Your community calendar

Tuesday The Small Business Centre at Burman University’s School of Business invites… Continue reading

Scheer won’t say if Conservatives hired consultant to ‘destroy’ People’s party

TORONTO — With election day less than 48 hours away, Andrew Scheer… Continue reading

Man’s death in Richmond, B.C. suspicious, not random, say investigators

RICHMOND, B.C. — The discovery of a man’s body in a Richmond,… Continue reading

Quebec man found guilty of first-degree murder in slaying of ex-wife, stranger

ST-JEROME, Que. — A Quebec man was found guilty of first-degree murder… Continue reading

Mexico says Trump shows ‘solidarity’ after suspect freed

MEXICO CITY — Mexican President Andrés Manuel López Obrador said Saturday he… Continue reading

‘I am back,’ Bernie Sanders tells supporters at NYC rally

NEW YORK — Storming past questions about his health, Bernie Sanders vowed… Continue reading

Leaders pour it on with rallies, boosts for candidates as campaign reaches peak

OTTAWA — Liberal Leader Justin Trudeau has a marathon day of campaigning… Continue reading

Most Read