Alberta's Credit Rating Downgraded

[roper1]

Standard & Poor's lowered Alberta's credit rating from AAA to AA+. If this trend continues downward, there will be very real consequences for Alberta. Thoughts ??

[elkdump]

Originally Posted by roper1

Standard & Poor's lowered Alberta's credit rating from AAA to AA+. If this trend continues downward, there will be very real consequences for Alberta. Thoughts ??

If the trend continues downward it will be " Pre Pay " not double AA ,,,

[79ford]

They still want to charge ahead with spending even as the oil glut gets much worse than it was, at this point they are bold or making a really bad move. I have a feeling they are banking on a rebound in oil that may not happen.

On the other hand everyone wants jobs, the 60 000+ jobs that have been lost are probably gone for awhile and in order to get the books balanced the government would need to shave a good 10 billion out of spending, which 60-90k job cuts.

Imagine the price of real estate etc if the government laid off as many people as the oil patch has,lol

[densa44]

I guess the oil boom is over forever. Man what a ride. Now is time, a bit past the time to get on with something else.

The over the top reaction to Bill 6 tells me that things are not all that great down on the farm either.

It is not as if we weren't told. As Tallyrand told Louis the fourteenth, in referring to Canadians, he used a Biblical quote, "They are hewers of wood and drawers of water". We have got to get a manufacturing industry going asap.

[JamesB]

Originally Posted by densa44

I guess the oil boom is over forever. Man what a ride. Now is time, a bit past the time to get on with something else.

The over the top reaction to Bill 6 tells me that things are not all that great down on the farm either.

It is not as if we weren't told. As Tallyrand told Louis the fourteenth, in referring to Canadians, he used a Biblical quote, "They are hewers of wood and drawers of water". We have got to get a manufacturing industry going asap.

Yes, we need to look at increasing manufacturing. The current governments (Both Federal and Provincial) seem to be hard wired to frustrate this goal though. Increasing taxes, regulations and energy costs are all destined to make manufacturing less likely. In the end we will likely see lots more corporate welfare as government tries to woo business by giving them free stuff instead. Then of course we all get to pay more in taxes to generate the new jobs that we would not have to be doing if government would stop making it so hard to do business.

[JimPS]

Corporate credit ratings are a bunch of BS.

A good one supposedly lets you borrow money at the best interest rates, but as soon as you need to borrow money, you lose your good rating.

Just another parasitic wanker-banker-gangster hustle.

[Redfrog]

Originally Posted by JimPS

Corporate credit ratings are a bunch of BS.

A good one supposedly lets you borrow money at the best interest rates, but as soon as you need to borrow money, you lose your good rating.

Just another parasitic wanker-banker-gangster hustle.

Of course. Which money management field is your specialty?

[JimPS]

Originally Posted by Redfrog

Of course. Which money management field is your specialty?

It must have been a good one - I don't look anywhere near as old as you and I don't have to work anymore.

[Taco]

Alberta's credit rating was downgraded to AA+ or even lower(?) during Klein reign as well

[Headdamage]

[roper1]

Originally Posted by JimPS

Corporate credit ratings are a bunch of BS.

A good one supposedly lets you borrow money at the best interest rates, but as soon as you need to borrow money, you lose your good rating.

Just another parasitic wanker-banker-gangster hustle.

Maybe the province doesn't really need to borrow as much money as they are going to.......???

[roper1]

Originally Posted by Taco

Alberta's credit rating was downgraded to AA+ or even lower(?) during Klein reign as well

I remember that, and he had a very specific well designed plan to repair the damage. Which he implemented exceptionally well. As a matter of fact, within a few short years the province was completely debt-free, which he then gave us back some of our own cash. I like that....

[hal53]

To the average Alberta voter, the difference between AAA and AA means nothing, this Gov't. should have to publicize the difference in monthly interest payments on the billions they have borrowed and the billions they plan to borrow in the near future between the 2 ratings

[2 Tollers]

The article by Rick Bell this weekend notes that the report mentioned low oil prices as one factor the other factors mentioned included projected weak budgetary performances over the next two years and rapidly rising tax-supported debt burden. Heading into a budget where increased borrowing is planned the drop in the credit rating seems to have taken the increased debit burden as a significant point.