DBRS confirms Alberta at AAA

DBRS said it confirmed the long-term debt and short-term debt ratings of the Province of Alberta at AAA and R-1 (high), respectively.

The trend on both ratings remains stable and is supported by the province's efforts to restore fiscal balance, a very low debt burden and strong economic fundamentals driven by robust investment in the energy sector.

Nevertheless, DBRS said Alberta's high reliance on non-renewable resource revenues leaves it exposed to volatility in commodity prices and demand, which adds complexity to fiscal management.

This may make the objective of restoring fiscal balance by next year difficult to achieve if energy prices remain materially below forecast, the agency said.

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