Anyone could have seen this coming from a mile away.
Alberta’s credit rating has now officially been downgraded by bond rating agency Standard and Poor’s, tumbling from our coveted AAA status. The government’s poor budgeting and snowballing debt load played a big role, but the premier and finance minister are refusing to own up to it.
Bart Simpson rose to accidental fame in a classic Simpsons episode for coining his catchphrase, “I didn’t do it.” He recorded a rap song and developed a franchise based on it. But even Bart tired of his fame. You can’t go on saying “I didn’t do it” forever.
Yet, that’s exactly our government’s approach. In fact, it was just months ago in July when a Moody’s report first warned that the rapid pace at which Alberta was racking up debt could impact its then-AAA credit rating.
Moody’s is one of a few bond rating agencies that gives credit ratings to governments, similar to how an individual’s credit score determines the rates at which she can borrow. If an individual piles up debt, lenders view her as a higher risk, and increase interest rates on her new credit card usage. It works the same way for governments.
The Moody’s report said that the Alberta government would be watched closely, in “the absence of a credible plan to restore fiscal balance in the next few years, rebuild reserve funds and contain debt accumulation.” Coupled with eroding assets, continuing to rack up debt would put “downward pressure” on Alberta’s credit rating.
more diptastic stuff
Alberta government's approach to budgeting can't be "I didn't do it" - The Rebel
Alberta’s credit rating has now officially been downgraded by bond rating agency Standard and Poor’s, tumbling from our coveted AAA status. The government’s poor budgeting and snowballing debt load played a big role, but the premier and finance minister are refusing to own up to it.
Bart Simpson rose to accidental fame in a classic Simpsons episode for coining his catchphrase, “I didn’t do it.” He recorded a rap song and developed a franchise based on it. But even Bart tired of his fame. You can’t go on saying “I didn’t do it” forever.
Yet, that’s exactly our government’s approach. In fact, it was just months ago in July when a Moody’s report first warned that the rapid pace at which Alberta was racking up debt could impact its then-AAA credit rating.
Moody’s is one of a few bond rating agencies that gives credit ratings to governments, similar to how an individual’s credit score determines the rates at which she can borrow. If an individual piles up debt, lenders view her as a higher risk, and increase interest rates on her new credit card usage. It works the same way for governments.
The Moody’s report said that the Alberta government would be watched closely, in “the absence of a credible plan to restore fiscal balance in the next few years, rebuild reserve funds and contain debt accumulation.” Coupled with eroding assets, continuing to rack up debt would put “downward pressure” on Alberta’s credit rating.
more diptastic stuff
Alberta government's approach to budgeting can't be "I didn't do it" - The Rebel
