Alberta's financial outlook has received a positive boost as S&P Global Ratings announced an upgrade to the province's long-term issuer credit rating to AA- from A+, with a continued stable outlook. Additionally, the short-term issuer credit rating was raised to A-1+ from A-1. President of Treasury Board and Minister of Finance Nate Horner expressed satisfaction with the credit rating upgrade, attributing it to Alberta's responsible fiscal management and robust economic growth strategy.In a statement, Minister Horner remarked, "This upgrade recognizes Alberta’s responsible fiscal management and strong economic growth strategy, which resulted in a balanced budget last fiscal year." The province's second-quarter fiscal update indicates Alberta continues to lead the country in economic growth, projecting a surplus of $5.5 billion for the fiscal year 2023/24. This represents a substantial increase of $3.2 billion from the Budget 2023 forecast.Despite potential challenges such as economic volatility, S&P Global Ratings anticipates Alberta's financial performance will remain stable in the coming years, attributing this resilience to oil prices and prudent financial management. This positive evaluation aligns with assessments from other credit rating agencies. Throughout the year, Moody’s Investors Service, DBRS Morningstar and Fitch Ratings Inc. have all acknowledged and upgraded their credit ratings for Alberta.Horner acknowledged the potential impact of factors such as volatile oil prices, high debt servicing costs, inflation challenges and global economic uncertainties. In response, he emphasized the government's commitment to fortifying Alberta's economic foundation. The new fiscal framework includes a mandate to use at least half of the available surplus cash to pay down debt. For the current fiscal year, Alberta is forecasted to reduce its debt by $3.2 billion."We will continue to manage Alberta’s finances responsibly while still meeting Albertans’ needs both today and well into the future," said Horner.
