EDMONTON – The Alberta government’s credit rating has taken another hit.
Moody’s Investors Service has downgraded the province’s rating to Aa2 stable from Aa1 negative.
The rating service cites weakness in the provincial economy that remains concentrated and dependent on non-renewable resources _mainly oil.
It says reliance on such resource revenue causes volatility in financial performance and remains pressured by a lack of sufficient pipeline capacity to transport oil efficiently.
Moody’s also says continued deficits will lead to the province’s debt burden stabilizing at higher levels.
United Conservative Finance Minister Travis Toews blamed the lower rating, which affects how much interest the government pays on borrowed money, on previous governments.
Meanwhile, the Opposition NDP point the finger at the recent corporate tax cut from the UCP government.
Today @MoodysInvSvc announced that they are downgrading Alberta's credit rating.
— Alberta's NDP Caucus (@abndpcaucus) December 4, 2019