“I am pleased to see that S&P Global Ratings has raised Alberta’s current long-term issuer credit rating to AA- from A+ with a continued stable outlook. S&P Global Ratings also upgraded its short-term issuer credit rating for the province to A-1+ from A-1.
“This upgrade recognizes Alberta’s responsible fiscal management and strong economic growth strategy, which resulted in a balanced budget last fiscal year.
“Alberta’s second-quarter fiscal update shows the province continues to lead the country in economic growth with a projected surplus of $5.5 billion for 2023-24. This is an increase of $3.2 billion from the Budget 2023 forecast.
“Despite economic volatility, S&P Global Ratings expects Alberta’s financial performance to remain stable over the next two years due to oil prices and prudent financial management.
“Other credit rating agencies have also acknowledged the province’s fiscal and economic progress. This year, Moody’s Investors Service and DBRS Morningstar upgraded their credit ratings for Alberta while Fitch Ratings Inc. upgraded its outlook.
“Volatile oil prices, high debt servicing costs, inflation challenges and general uncertainty due to slowing global growth will affect Alberta’s economy. That is why we have committed to increasing savings and reducing debt to secure Alberta’s future.
“Through our new fiscal framework, we are required to use at least half of the available surplus cash to pay down debt. In fact, Alberta is forecasted to pay down $3.2 billion in debt this fiscal year.
“We will continue to manage Alberta’s finances responsibly while still meeting Albertans’ needs both today and well into the future.”