A report from DBRS reaffirms the significant impact the drop in global commodity prices has had on Albertans and this province.
“All across Canada – and especially right here in Alberta – communities are feeling the impact of the global oil price collapse.”
The DBRS report maintains Alberta’s AAA rating, but the report altered Alberta’s trend due to the continued drop in commodity prices. The credit rating agency also confirmed the province’s short-term debt rating at R-1 (high) with a stable trend.
“While we don’t control oil prices, we do control our response. Our government will work to find efficiencies, but we will not make reckless cuts that would simply make a bad situation worse. We will continue to reduce our vulnerability to these shocks, by promoting economic growth and encouraging diversification.”
Since May, the government has taken important steps to ensure the province comes out of this economic downturn stronger than before. These include:
- putting Albertans back to work with an expanded infrastructure program, totaling $34 billion in new spending over the next five years;
- promoting home-grown businesses and entrepreneurship by expanding capital available to ATB Financial;
- investing in Alberta companies through an expanded mandate for the Alberta Investment Management Corporation;
- increasing the amount of money available to Alberta’s venture capital community through the Alberta Enterprise Corporation; and
- expanding the child tax benefit to ensure Alberta’s most vulnerable families can make ends meet.
“We will do all of this while limiting debt to 15 per cent of our GDP – half the average of other Canadian provinces. It is at times like these that government needs to take measures to absorb the shock of volatile commodity prices on families and businesses alike. That is what we committed to do for Albertans, and that is what we will deliver.”