Alberta’s credit rating has been downgraded by Moodys, lowering the province’s rating from Aa1 to Aa2. The agency cited a number of factors in their decision, including Alberta’s continued dependence on oil.

This comes despite Alberta Premier Jason Kenney’s moves to slash public spending and cut corporate tax rates. The latter, it appears, is concerning for the credit agency’s outlook. The corporate tax cuts will decrease government revenues by billions of dollars. However, the Kenney government has claimed that revenues will balance out due to increased investment. 

The Moody’s report is skeptical of Kenney’s claims. The credit agency doubts that revenues will indeed balance themselves. The elimination of carbon pricing is also cited as a lost stream of revenue. Put together, these changes create a real lack of confidence in regards to Alberta’s ability to generate sufficient revenues.

Alberta’s finance minister, for his part, has chosen to blame the NDP for the credit downgrade.