Alberta rating upgraded by S&P as oil cash boosts province's surplus
BNN Bloomberg
Alberta’s credit rating was raised one level by S&P Global Ratings on expectations that strong oil prices and measures to manage expenses will keep the Canadian province’s debt burden in check.
The oil-rich province’s credit rating was lifted to AA-, the fourth-highest available, from A+, S&P said in a note Monday. The outlook on the rating was “stable,” the firm said.
Alberta is benefiting from strong oil prices with bitumen royalties expected to be about $1.8 billion more than initially expected in the current fiscal year, according to a recent budget update. That helped swell the provincial government’s projected fiscal surplus to $5.5 billion.
“We expect that Alberta will be able to carry this momentum into the next two years as it continues to produce after-capital surpluses,” S&P said.
