October 28, 2015
NDP budget Day 1: record debt already damaging Alberta's credit rating
Credit rating agencies are warning investors the first NDP debt-laden budget is already putting downward pressure on Alberta’s AAA credit rating, the Wildrose Official Opposition said today.
Today, Moody’s released an update to markets saying Alberta’s planed steep debt increase will be credit negative. DBRS Limited also commented on the record-level of debt that will be accumulated under the NDP saying the plan will, “exhaust flexibility within the current ratings.”
“These reports confirm what Wildrose has been saying for a long time, Alberta needs to get a grip on its spending to protect the long-term sustainability of our front-line services and keep more money in the pockets of Albertans,” Wildrose Leader Brian Jean said. “We are deeply concerned for families sitting around their kitchen table who will be facing higher taxes just to pay off the province’s skyrocketing interest payments.”
The NDP’s budget currently projects $47 billion in debt by the end of their first term, packaged with a stunning $26.8 billion drop in net financial assets over the next three years.
Wildrose had earlier warned the NDP that without a realistic plan to get a grip on its rapidly increasing debt, it would begin to have a negative impact on government services right across Alberta.
“Municipalities, universities and institutions across Alberta who rely on Alberta’s current AAA current rating will be hit hardest by the government’s plan to bring in record levels of debt,” Jean said. “Families are nervous about the future of our province, and want to see the government take some actual measures to tighten their belts and cut waste across government.”