April 15, 2016
Credit rating downgraded due to dangerous NDP budget
Credit rating agencies are already downgrading Alberta’s credit rating because of a dangerous NDP budget that will mean $58 billion in debt, higher interest payments, higher taxes and less money for hospitals, schools, teachers and nurses, the Wildrose Official Opposition said today.
DBRS officially dissolved Alberta’s AAA credit rating after the NDP budget was released. Moody’s Investors Service reacted to the NDP budget stating that “significant upcoming deficits, reflecting Alberta’s weakened fiscal circumstances, and rising debt levels are credit negative for the province and will exert growing pressure on its rating.”
“The NDP debt plan is already projecting a $2,000 per year burden for families in annual interest payments, and a credit downgrade would leave even less money for government to spend on the teachers and nurses that Albertans rely on,” Wildrose Leader Brian Jean said. “Instead of listening to the common sense recommendations put forward by Wildrose to reduce the deficit, this government is plunging ahead and Albertans will be the ones to pay the price.”
As recently as Tuesday night, Brian Jean warned Albertans that credit agencies were taking notice of the direction this government was heading. Yesterday's budget made things even worse by blowing through the government's debt ceiling.
“The impact of a credit downgrade would be far reaching, raising the cost on services, sending a signal to investors that Alberta is less friendly under the NDP, and also negatively impacting the municipalities who rely on the province’s borrowing rate,” Wildrose Shadow Finance Minister Derek Fildebrandt said. “These repeated warnings of a credit downgrade show just how dangerous and out of touch the NDP plan is. They must reverse their risky plan to ignore any spending restraint and instead burden future generations with the tough decisions.”