Alberta's credit was downgraded again. This time again by Standard & Poor's, a global credit and bond rating agency.
S&P has downgraded Alberta’s credit once before. They stripped Alberta a full rating, from Triple A down to Double A+, back in December.
The NDP has done nothing to address the concerns S&P expressed in December about the province's fiscal woes. They carried on with their agenda.
This is what S&P gave as their rationale:
“A one notch downgrade reflects the impact of depressed oil prices on Alberta's important resource revenues, and the province's fiscal response that, so far, has not meaningfully counterbalanced this external shock. Based on the province's latest budget released last month, we now expect the depth and duration of the province's after-capital deficits and related run-up in tax-supported debt to be much greater than what we foresaw in our last review in December 2015, leading us to conclude that Alberta's credit profile is no longer consistent with the 'AA+' rating.”
Ontario is the biggest sub sovereign borrower. It has the biggest debt load for a non nation. It’s like Greece but if Greece were a province.
And Alberta is truly replicating Ontario. Alberta is plowing ahead with the same coal fired electricity phase out that Ontario did. It’s going to cost Alberta taxpayers billions to end contracts with electricity suppliers and generators. This phase will add billions to government debt and scare off capital investment by increasing the costs of doing business here. Count on more credit downgrades.
These NDP’ers just don’t get it. They keep getting Alberta’s credit downgraded and then they keep doing the same things. At what point are they going to figure out that they need to do something different to get a different result? When are they going to realize that their stupid ideas aren't working?
And we all know, that if Joe Ceci was a conservative, the NDP would be screaming that he should be removed from his portfolio. And they’d be right. He is the worst Finance Minister Alberta has ever had. Perhaps it’s the union mentality of the NDP. Maybe they have a natural instinct to protect the worst amongst them.
It’s been nearly 12 years, in July 2004, since Ralph Klein held up that sign that said paid in full and now we’re racing Ontario to the bottom.