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Alberta credit rating downgraded due to weak economy, $4.7 billion handout

By on December 4, 2019


FILE: Premier Jason Kenney and Cabinet are sworn in at Government House, in Edmonton on Tuesday, April 30, 2019. (Photo by Chris Schwarz/Alberta Government via Premier of Alberta/Flickr, CC BY-ND 2.0)

EDMONTON – Moody’s has downgraded the province’s credit rating, citing failure to diversify, and overall mismanagement of Alberta’s economy by Premier Jason Kenney and his UCP government.

In a press release, Moody’s referenced “structural weakness in the provincial economy” and the $4.7 billion corporate handout as reasons for the downgrade. Moody’s stated the UCP’s corporate gift will “pressure revenues over the next few years” despite the UCP’s claims to the contrary.

“On the day when we finally turn the corner on market access and break ground on TMX due to Rachel Notley’s tireless efforts, we also have further proof the UCP economic plan is not working,” said Shannon Phillips, NDP Finance Critic. “The $4.7 billion corporate giveaway has created no jobs to date, and this government’s corruption and pro-separatist rhetoric has chased away investors.”.

In addition, Moody’s stated that part of the reason for the downgrade was due to “ the province’s debt burden stabilizing at a higher level than previously forecasted” despite Kenney and the UCP’s claims to be reducing debt levels.

“With cuts to social programs, Jason Kenney seems content to move our province backwards while increasing the deficit by $2 billion. The UCP debt is virtually the same as the NDP, but the difference is the UCP blew a hole in the budget, has no diversification plan, has presided over thousands of job losses with no end in sight,” said Phillips.

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