Moody's downgrades Alberta's credit rating from AAA to AA1
Moody's Investors Service downgraded Alberta's long-term debt rating from AAA to AA1, blaming "deep deficits and long return to balanced budgets forecasted by the province, and the resulting rapid and substantial rise of provincial debt levels."
Provincial Finance Minister Joe Ceci says he's disappointed by the downgrade but defends the province's refusal to reduce government spending. The minister is headed to Toronto and New York to try and convince credit rating agencies and international investors that things are not as bleak as they seem in Alberta. Standard & Poor's downgraded the province to AA+ last December while DBRS downgraded Alberta to AA1 in early April shortly after the budget was released. A lower credit rating raises the cost of borrowing for the province.