“The Progressive Conservatives have been warning this government for months that their reckless and irresponsible fiscal policies would result in further credit downgrades for Alberta. Yesterday’s budget forecasted debt servicing costs would rise to $2 billion by 2019, but today’s downgrade signals that those interest payments will likely be much higher, as more global credit ratings agencies follow suit.
Even more concerning is that with the downgrade to the Alberta Capital Finance Authority, every municipality in the province will also bear the burden of higher interest rates and increased debt.
Premier Notley and her government have put Alberta on a path to record deficits and debt, with no plan to pay any of it back. Last fall, credit ratings agencies put this government on watch, warning that their lack of sound fiscal planning would ultimately result in downgrades and higher borrowing costs. We are extremely disappointed that they did not heed these warnings.
Previous Progressive Conservative governments proudly built Alberta’s AAA credit rating and maintained it for 15 years, while also weathering challenging economic circumstances. This is due to the fact that Progressive Conservative governments did not borrow to fund day-to-day operations since attaining our AAA credit rating and our capital debt repayment plans were sound and credible. Finance Minister Joe Ceci would do well to follow this example.”