Fitch cuts Alberta

Fitch Ratings said it downgraded Alberta’s local-currency and foreign currency issuer default ratings to AA- from AA. The agency also lowered the senior unsecured bond rating to AA- from AA.

“The downgrade of the province’s IDR is due to Fitch’s expectation that sharply higher provincial borrowing during the pandemic-driven economic crisis and in the recovery to follow will result in a debt burden relative to GDP that is incompatible with an AA rating,” Fitch said in a press release.

The outlook reflects the risk stressors identified in Fitch’s rating case crystalize, leading to added deterioration in credit quality, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.