Moody’s eyes Alberta for downgrade

Moody’s Investors Service said it placed the Aa2 long-term debt rating of the province of Alberta under review for downgrade. Concurrently, Moody’s placed under review for downgrade the Aa2 long-term debt ratings of the Alberta Capital Finance Authority and the Aa2 long-term issuer rating of ATB Financial, reflecting their status as agents of the crown and the provincial guarantee of all their liabilities.

“The review for downgrade follows the province’s Aug. 27 fiscal update for 2019-20 and 2020-21 that reflects a significantly faster debt accumulation and larger deficits than previously projected under Moody’s stress scenarios. The review period will allow Moody’s to assess the impact of the revised fiscal plan of the province, including its susceptibility to the continued uncertainty stemming from the ongoing coronavirus pandemic, as well as the impact on its debt and liquidity profiles,” the agency said in a press release.

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