Lest anyone think the UCP government’s fiscal policies aren’t paying off, Alberta just got a big credit upgrade from the bond managers in New York.Fitch Ratings this week upgraded Alberta’s long-term rating on senior unsecured bonds to AA from AA-Minus. In its report, the agency noted the province’s net adjusted debt levels dropped over two years by $17 billion to $57.5 billion, for the fiscal year ending in March.It’s significant because a credit rating upgrade lowers the cost of borrowing. Alberta’s debt-servicing costs are expected to hit $3.4 billion this year. The latest number means that figure is expected to fall by $244 million for the next fiscal year..Credit ratings reflect a borrower’s — in this case the Alberta government’s — ability to pay interest and to repay principal. Thus, they dictate the government’s borrowing costs since an investor will demand a higher interest rate on riskier investments.The Alberta government is expected to borrow about $11.6 billion this year for future debt requirements. Existing debt will mature in early 2025-26.It comes after a Conference Board of Canada report last week pegged Alberta’s growth rate at about 2.4% next year, fuelled by the Trans Mountain pipeline expansion and the LNG Canada project. By comparison, Canada’s growth rate was pegged at about 0.8%..“BC's economic prospects will continue to wane in 2024, largely due to the impact of inflation and high interest rates.“S&P Global Ratings.It comes as other provinces have been downgraded in recent months. In April, British Columbia was reduced to AA- from S&P Global Ratings owing to what it called a “relatively steep increase” in debt through 2027.“The negative outlook reflects a one-in-three chance that we could lower the ratings in the next two years if, in our view, the province's commitment to fiscal consolidation continues to waver.”BC’s debt is projected to rise from $89 billion to $156 billion between 2022 and 2027. “BC's economic prospects will continue to wane in 2024, largely due to the impact of inflation and high interest rates. We estimate BC's real GDP will increase by 1.1% in 2024 and 2.8% in 2025. This is moderately better than our national forecast of about 0.9% and 1.5%, respectively,” the agency said..Meanwhile, the Canadian Taxpayers Federation (CTF) applauded the Alberta government for its fiscal discipline which earned the province a boost in its credit rating. “Alberta is one of the only provinces in Canada with a balanced budget, and it shows with this credit upgrade,” said Kris Sims, CTF Alberta Director. “Paying down the debt, restraining spending and saving for the future were very good moves by this government.”In its most recent budget, Alberta reported a $367-million surplus. That stands in contrast to neighbouring Saskatchewan’s $273-million deficit and British Columbia’s record-breaking $7.9-billion deficit..This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
Lest anyone think the UCP government’s fiscal policies aren’t paying off, Alberta just got a big credit upgrade from the bond managers in New York.Fitch Ratings this week upgraded Alberta’s long-term rating on senior unsecured bonds to AA from AA-Minus. In its report, the agency noted the province’s net adjusted debt levels dropped over two years by $17 billion to $57.5 billion, for the fiscal year ending in March.It’s significant because a credit rating upgrade lowers the cost of borrowing. Alberta’s debt-servicing costs are expected to hit $3.4 billion this year. The latest number means that figure is expected to fall by $244 million for the next fiscal year..Credit ratings reflect a borrower’s — in this case the Alberta government’s — ability to pay interest and to repay principal. Thus, they dictate the government’s borrowing costs since an investor will demand a higher interest rate on riskier investments.The Alberta government is expected to borrow about $11.6 billion this year for future debt requirements. Existing debt will mature in early 2025-26.It comes after a Conference Board of Canada report last week pegged Alberta’s growth rate at about 2.4% next year, fuelled by the Trans Mountain pipeline expansion and the LNG Canada project. By comparison, Canada’s growth rate was pegged at about 0.8%..“BC's economic prospects will continue to wane in 2024, largely due to the impact of inflation and high interest rates.“S&P Global Ratings.It comes as other provinces have been downgraded in recent months. In April, British Columbia was reduced to AA- from S&P Global Ratings owing to what it called a “relatively steep increase” in debt through 2027.“The negative outlook reflects a one-in-three chance that we could lower the ratings in the next two years if, in our view, the province's commitment to fiscal consolidation continues to waver.”BC’s debt is projected to rise from $89 billion to $156 billion between 2022 and 2027. “BC's economic prospects will continue to wane in 2024, largely due to the impact of inflation and high interest rates. We estimate BC's real GDP will increase by 1.1% in 2024 and 2.8% in 2025. This is moderately better than our national forecast of about 0.9% and 1.5%, respectively,” the agency said..Meanwhile, the Canadian Taxpayers Federation (CTF) applauded the Alberta government for its fiscal discipline which earned the province a boost in its credit rating. “Alberta is one of the only provinces in Canada with a balanced budget, and it shows with this credit upgrade,” said Kris Sims, CTF Alberta Director. “Paying down the debt, restraining spending and saving for the future were very good moves by this government.”In its most recent budget, Alberta reported a $367-million surplus. That stands in contrast to neighbouring Saskatchewan’s $273-million deficit and British Columbia’s record-breaking $7.9-billion deficit..This is what the Western Standard is up againstThe Trudeau government is funding lies and propaganda by directly subsidizing the mainstream media. They do this to entrench the powerful Eastern, woke and corrupt interests that dominate the political, social and economic institutions in Canada. Federal authorities are constantly trying to censor us and stop us from publishing the stories that they don’t want you to read. Ottawa may weaponize our taxes and police against us, but we’ve got a powerful ally on our side.You. Free men, and free women. We need you to stand with us and become a member of the Western Standard. Here’s what you will get for your membership:Unlimited access to all articles from the Western Standard, Alberta Report, West Coast Standard, and Saskatchewan Standard, with no paywall. Our daily newsletter delivered to your inbox. .Access to exclusive Member-only WS events.Keep the West’s leading independent media voice strong and free.If you can, please support us with a monthly or annual membership. It takes just a moment to set up, and you will be making a big impact on keeping one the last independent media outlets in Canada free from Ottawa’s corrupting influence.
