Alberta’s credit rating has been upgraded from AA3 (positive outlook) to AA2 (stable outlook).
Moody’s Investors Service made the upgrade on Jan. 26, 2023 as a result of the high price of oil.
“While Alberta continues to face volatility in revenues from oil prices, the sustained high oil prices above pre-pandemic levels have changed the fiscal trajectory of the province towards ongoing surpluses,” said Moody’s assessment.
“The stable outlook reflects Moody’s view that the fiscal improvements from continued projected surpluses and significantly lower debt levels over the next two years will allow the province to balance the key pressures from inflation and fluctuating resource prices.”
With high incomes, competitive taxes, and revenue growth, economic forecasters expect Alberta to lead the provinces in GDP growth.
Since 2021, Alberta has received four positive changes to its long-term credit outlook and two 1-notch credit upgrades, including from S&P (May 2022) and Moody’s (January 2023).
Credit ratings are usually reviewed on an annual basis.
Current credit ratings for all agencies are as follows:
- Fitch Ratings Inc. : AA- (stable outlook) as of January 2023
- Moody’s Investors Service: AA2 (stable outlook) as of January 2023
- DBRS Morningstar: AA (low – positive trend) as of Sept. 2022
- S&P Global: A+ (stable outlook) as of May 2022.
Leading up to Budget 2023, the Government of Alberta will continue to focus on investment attraction, economic growth, diversification, and job creation.