Another Major Credit Downgrade Should be a Call to Action: Wildrose

Another Major Credit Downgrade Should be a Call to Action: Wildrose

EDMONTON, AB (May 19, 2016): The NDP government should reinstate a debt ceiling after Standard and Poor’s (S&P) delivered a deeper downgrade to Alberta’s credit rating, the Wildrose Official Opposition said today.

S&P lowered Alberta’s rating to AA from AA+ citing the NDP’s “very weak budgetary performance and high, increasing debt.” The agency lowered Alberta’s rating last December to AA+ from AAA.

This is the fourth major credit downgrade Alberta has faced in the past five months.

“Wildrose warned of the dangers of a credit downgrade in October and said repeatedly that the NDP government must wake up to the economic realities of taking on record debt without having a plan to pay it back,” Wildrose Leader Brian Jean said. “If the NDP doesn’t take action to rein in spending and put a cap on borrowing, we will not only see a greater loss of confidence in the Alberta economy, but mounting interest payments will threaten core government services.”

Wildrose Shadow Finance Minister Derek Fildebrandt said the government should reverse its plans to scrap a debt ceiling to show it’s learning a lesson from the rising tide of credit downgrades facing the province.

“After multiple warnings from the Wildrose, we’ve now seen punishing credit downgrades from every single major agency, and in the case of Standard and Poor’s, we’ve now seen two,” Fildebrandt said. “The financial community is losing confidence in the NDP. If the NDP wants to start rebuilding that confidence, they can reinstate a debt ceiling at once.”

Listen to the audio of Brian Jean responding to the credit downgrade: